Chinese government officials told customs agents that Nvidia’s H200 chips are not allowed in China, according to a Reuters report which cites three people briefed on the matter.
The report also mentions that Chinese governmental authorities summoned domestic technology companies to meetings on Tuesday where they were explicitly instructed not to purchase the chips unless necessary.
“The wording from the officials is so severe that it is basically a ban for now, though this might change in the future should things evolve,” one of the people cited said.
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The U.S. said it was easing curbs on the chips in December 2025, going back on earlier policies. President Donald Trump said that these chips — regarded as Nvidia’s second best AI chips — will be allowed to be exported to China, and a 25% fee will be collected on the sales. The decision appeared to settle a debate on whether Nvidia and its rivals should maintain a global lead by selling to China or withhold the exports.
It remains unclear why Beijing wants to restrict the chips, despite the strong demand from Chinese firms. It might either be a move to boost local companies, or because it is still chewing over restrictions, or because these measures could be used as a bargaining tactic in talks with Washington.
The sources, who spoke on condition of anonymity due to the sensitivity of the matter, said authorities had not provided any reasons for their directives and had not given any indication whether this constitutes a formal ban or a temporary measure. However, it is not certain if the directives applied to existing orders for H200 chips or only to new orders.
The Information on Tuesday reported that the Chinese government this week told some tech companies it would only approve their H200 purchases under special circumstances, such as for research and development conducted in partnerships at universities.
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Nvidia had previously said it told Chinese clients it aims to start shipping its second-most powerful AI chips to China before the Lunar New Year holiday in mid-February. The U.S. chipmaker planned to fulfil initial orders from existing stock, with shipments expected to total 5,000 to 10,000 chip modules — equivalent to about 40,000 to 80,000 H200 AI chips. The company also told Chinese clients that it plans to add new production capacity for the chips, with orders for that capacity opening in the second quarter of 2026, according to Reuters.