The Chinese government on January 13 instructed certain technology companies to purchase Nvidia’s H200 AI chips only under special circumstances, such as university research, according to a report by The Information citing two people with direct knowledge.
The directive emerged as Beijing maintains caution toward fully reopening its market to Nvidia. The company’s semiconductors power the most advanced artificial-intelligence applications and data centers worldwide. Last week, Chinese authorities requested that some companies pause their orders for the H200 chips. This step aims to prioritize domestic firms amid China’s efforts to lead in artificial intelligence.
Officials described the instruction as deliberately vague. It requires firms to acquire the chips solely when necessary, without defining that term. Such ambiguity leaves companies uncertain about permissible scenarios beyond the specified exceptions like academic projects.
China seeks to bolster its domestic AI infrastructure. Authorities encourage local enterprises to diminish dependence on foreign technology suppliers. Nvidia occupies a challenging position, navigating restrictions from Washington alongside Beijing’s drive for technological self-reliance.
Chinese Embassy spokesperson Liu Pengyu addressed the matter by stating, “As a principle, ensuring the smooth development of economic, trade, and technological cooperation is in the common interest of both China and the U.S.”
The government intends to hold further meetings with additional companies to issue the same purchase restrictions. Details remain unclear on whether these sessions will offer fresh instructions or clarifications.
