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Nvidia stock is trading higher today on reports that China has cleared the way for ByteDance, Alibaba, and Tencent to begin purchasing Nvidia’s advanced H200 artificial intelligence (AI) chips. U.S. President Donald Trump had previously cleared H200 exports to the Communist country but Chinese companies were apparently waiting for a nod from the government.
Chinese regulators had previously hesitated to approve the imports, fearing they would undermine the growth of domestic chipmakers like Huawei. Though,the tide turned this week during an official visit to China by Nvidia CEO Jensen Huang.
China Reportedly Clears Imports of H200
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According to reports, the first batch of approvals covers over 400,000 H200 chips, worth an estimated $10 billion.ByteDance, Alibaba, and tencent are the first in line, with a queue forming for other domestic firms. Sources indicate that Beijing’s “nod” comes with strings attached. Regulators are expected to require a bundle ratio, where companies must purchase a certain percentage of domestic AI chips (such as Huawei’s Ascend series) for every Nvidia chip imported.
Why the H200 matters For China
The H200 is a significant leap over the “nerfed” H20 chips previously available to the Chinese market. It offers approximately six times the performance of the H20, making it essential for training the massive Large Language Models (LLMs) required to compete with Western entities like OpenAI.
In a social media post last month, Trump said that the exports have been allowed “under conditions that allow for continued strong National Security,” to which he added, “President Xi responded positively!”
It is worth noting that the export license covers the Nvidia H200 accelerator, which is the company’s second-most powerful AI chip and a ample upgrade over the previously restricted, lower-performance H20 variant.
The more advanced, next-generation Blackwell and upcoming Rubin chip families will remain off-limits to Chinese customers, ensuring that America maintains its technological edge.
The deal specifies that exports will only be made to “approved commercial customers,” with the Department of Commerce finalizing the details and vetting process.
