Chinese customs officials have reportedly issued a clear directive to agents. They are now prohibiting Nvidia's high-end H200 artificial intelligence chips from entering the country. This move signals a significant escalation in the ongoing silicon trade war between Washington and Beijing.
Severe Wording Indicates a Firm Ban
News agency Reuters cited sources briefed on the matter. They reported that the customs directive was paired with high-level meetings earlier this week. One source provided a telling quote to Reuters. "The wording from the officials is so severe that it is basically a ban for now," the source said. The source added that this stance might change in the future should circumstances evolve.
This development is particularly notable. It comes despite recent conditional approval from the Trump administration for these chips to be exported to China. Furthermore, domestic Chinese tech giants have already received warnings. Authorities have advised them against purchasing the powerful processors unless absolutely necessary.
High Demand for Powerful AI Hardware
The H200 represents a major leap in computing power. It is Nvidia's second-most powerful AI chip on the market. The company claims it offers roughly six times the performance of the previously restricted H20 model. Demand for these chips remains incredibly high. Reports indicate orders for over two million units, with each chip priced at around $27,000.
Possible Exceptions Under 'Special Circumstances'
Despite the broad ban, reports suggest a potential loophole exists. The Chinese government may approve H200 purchases under what it calls "special circumstances." These could include research and development partnerships at universities. However, officials have drawn a firm line on one issue. Using Nvidia chips for any military application purposes is completely banned without exception.
Chris McGuire, a senior fellow at the Council on Foreign Relations, offered analysis on Beijing's perspective. "Beijing believes the US is desperate to sell AI chips to China," McGuire said. He explained that Chinese leaders feel they have significant leverage. They believe they can extract concessions from the U.S. in exchange for granting license approvals.
Controversy Over Advance Payment Requirements
A recent Reuters report added another layer to the story. It claimed that Nvidia had set strict advance payment terms for Chinese companies. The report alleged the company required a full payment upfront for H200 AI chips. This requirement was purportedly due to uncertainty over whether Chinese regulators would greenlight the shipments.
Nvidia has firmly denied these claims. The company issued a statement addressing the report directly. Nvidia said it does not require upfront payment for H200 chips. The statement emphasized the company's policy. "We would never require customers to pay for products they do not receive," the company declared.
The situation remains fluid. The ban on the H200 chips highlights the growing technological rift between the world's two largest economies. Both sides are maneuvering for advantage in the critical field of artificial intelligence hardware.
