China’s Ministry of Commerce announced that it will allow limited imports of Nvidia’s H200 AI chips for the first time since the 2025 export‑control restrictions, with approvals to be granted on a case‑by‑case basis for non‑military, non‑government, and non‑critical‑infrastructure use.
The decision removes a key trade barrier that has kept Nvidia from accessing a market that could be worth more than $50 billion for AI hardware. The H200, built on Hopper architecture, offers 141 GB of HBM3e memory and 4.8 TB/s of bandwidth, a significant upgrade over the H100 and a critical component for large‑language‑model training.
Nvidia’s CEO Jensen Huang said that demand for the H200 in China is “quite high” and that purchase orders will signal China’s approval. The company is ramping up production and has imposed strict upfront payment terms to mitigate the uncertainty of import approvals. Huang also noted that the U.S. government has approved H200 exports to China with a 25 % surcharge, reflecting a compromise between maintaining U.S. competitiveness and limiting China’s access to the most advanced technology.
The potential re‑entry into China’s semiconductor market could provide Nvidia with a new revenue stream, but the case‑by‑case review and restrictions on military and state‑owned enterprises mean that the company will still face significant regulatory hurdles. The move also signals China’s dual strategy of leveraging foreign technology while investing heavily in domestic chip development, which could intensify competition for Nvidia’s high‑performance AI accelerators.
Management emphasized that the company remains focused on cost discipline and strategic investments in high‑return verticals. Huang highlighted the importance of maintaining pricing power in the face of rising raw‑material costs, while CFO Colette Kress noted that the U.S. government is “working feverishly” on license applications for H200 chips to China, underscoring the ongoing uncertainty in the regulatory environment.
Headwinds include the need for strict licensing and the potential for delayed approvals, while tailwinds are the strong demand from Chinese tech giants such as ByteDance and Alibaba, and the growing global AI market that positions Nvidia to capture a larger share of AI infrastructure spending. The company’s cautious approach, combined with its robust production capacity, positions it to capitalize on any approvals that come through the review process.
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