Nvidia suppliers have reportedly stopped production after Chinese customs blocked shipments of the company’s H200 AI chips, even though the processors were approved for export by the United States. The move has added fresh uncertainty to already tense US-China tech relations.
According to reports, Chinese officials have warned domestic firms against buying the chips and have not clarified whether the restriction is temporary or a full ban. The H200, Nvidia’s second most powerful AI chip, is in high demand in China and sits at the centre of strategic concerns over technology and security.
Confusion has been compounded by US policy requiring the chips to pass through American testing facilities, triggering a 25% tariff. Analysts remain split on whether allowing sales to China limits its tech development or risks strengthening its military capabilities.
