China has instructed its largest technology firms to prepare for placing orders for Nvidia’s H200 AI chips, signaling that official approval may be nearing. Companies, including Alibaba, Tencent, and ByteDance, have been told to begin the necessary preparations for the purchases.
Regulators have already granted preliminary approval for the companies to move into the next stage, enabling discussions on order volumes, schedules, and delivery arrangements.
Authorities have also instructed the firms to incorporate a portion of domestic chips into their procurement plans, though no specific quota has been set. The measure is intended to support local producers while permitting foreign chips to enter the market.
The chip under discussion is one generation older than Nvidia’s most advanced models, yet the H200 remains capable of training and operating large-scale AI systems. The H200 has emerged as a key factor in U.S.-China trade negotiations, as it falls under Trump-era regulations that permit exports of older hardware.
Meanwhile, Washington continues to restrict sales of Nvidia’s most advanced processors due to security concerns.
For Nvidia, the potential reopening is significant, as the company has spent months seeking to restore access to the market after restrictions halted sales. CEO Jensen Huang has said the AI chip business alone could grow to $50 billion in the coming years.
However, U.S. approval processes have slowed deliveries in recent months, and even when chips are cleared for sale, shipping them into China has remained difficult.
China once accounted for at least one-fifth of Nvidia’s data center revenue, declined sharply after export controls were imposed.
Meanwhile, China is moving forward with its push for self-sufficiency, planning incentives of up to $70 billion for the semiconductor industry. The move seeks to reduce dependence on foreign suppliers while ensuring the smooth operation of key technology platforms.
TEXTILE & APPAREL | Turkish Textile Exports Shift to North Africa as Demand Rises
