Nvidia H200 Chips Flow Back Into China; ByteDance, Tencent Each Receive About 10,000 Units

Limited batches of Nvidia's powerful H200 AI chips have been approved for shipment to mainland China, signaling a relaxation of restrictions on these advanced chips.

ByteDance and Tencent Holdings Ltd. have each received approximately 10,000 H200 processors over the past few weeks. Other Chinese tech groups may soon receive approval to take chips of a similar scale, according to the Financial Times report on Wednesday.

The H200 chip is older than Nvidia's latest generation of AI processors, which Chinese customers cannot purchase due to U.S. export controls. Chinese regulators have also allowed companies to ship H200 chips to Hong Kong for local use.

Last week, several Nvidia partners, including Lenovo, told Chinese customers they could resume ordering products equipped with H200 chips. These companies combine Nvidia chips with CPUs and networking equipment to build AI servers.

However, purchases still require separate approval through an application process overseen by China's National Development and Reform Commission, according to the report.

Nvidia did not immediately respond to a request for comment.

H200 Access to Hong Kong Faces Limits

Beyond the limited number of H200 chips entering mainland China, Chinese regulators have also allowed companies to ship these processors to Hong Kong and deploy them locally, even though Hong Kong operates outside mainland China's customs territory.

U.S. licenses likewise authorize Nvidia H200 chips for shipment to both mainland China and Hong Kong. However, access to Hong Kong offers limited help to Chinese tech companies, as the city lacks sufficient data center capacity to house these chips. Power constraints are also expected to limit any rapid expansion.

China Balances Nvidia and Huawei Interests

In July, Nvidia officially began shipping H200 AI chips to China under strict case-by-case government licenses. Initial volumes remained tightly restricted. Despite the limitations, recent U.S. approvals have allowed about 10 Chinese companies to receive advanced AI hardware from Nvidia and Microchip Technology Inc.

This development follows the Trump administration's May authorization to sell Nvidia H200 AI chips to 10 Chinese tech giants, including Alibaba Group Holding Ltd. and Tencent Holdings. Each approved customer could purchase up to 75,000 chips. However, Beijing's intervention blocked deliveries.

China's ongoing import controls highlight its push to strengthen domestic chipmakers, which seek a larger share of the world's second-largest semiconductor market, where Nvidia is largely shut out due to U.S. export restrictions.

Still, China's limited access to the most advanced chipmaking equipment may constrain its ability to meet rapidly growing domestic demand in the near term. This could sustain a certain level of demand for Nvidia chips, particularly for AI training.