Approximately 600,000 Nvidia's advanced artificial intelligence (AI) H200 chips are reportedly stuck in Hong Kong, unable to enter mainland China. Despite high demand from Chinese companies, the Chinese government has not approved large-scale imports.
According to multiple sources cited by Reuters on November 6, about 600,000 H200 chips are waiting in Hong Kong for transport to mainland China. In recent months, the Chinese government has allowed some semiconductor imports, with major Chinese tech firms like Alibaba and ByteDance reportedly receiving around 10,000 H200 chips each. However, approval for large-scale imports from Chinese authorities has yet to be granted. Some quantities have entered China through intermediaries and indirect routes. The issue of H200 imports to China has emerged as a significant point of contention in U.S.-China relations since early this year.
Reports indicate that DeepMind has also received purchase approval. As the U.S. government shifted its policy to allow H200 exports to China, Chinese companies began pursuing large-scale purchases. However, Chinese customs authorities communicated in mid-January that they would not permit the import of H200 chips, and the Chinese government has reportedly urged domestic companies to refrain from unnecessary purchases.
Subsequently, the Chinese government adjusted its stance. At the end of January, Reuters reported that Chinese authorities conditionally approved the purchase of over 400,000 H200 chips for three companies, including Alibaba, ByteDance, and Tencent. Reports also indicated that DeepMind received purchase approval. However, some quantities did not lead to actual orders due to unresolved purchase conditions.
In March, Reuters reported that Nvidia secured sales approval for H200 chips to multiple customers in China. However, import approval and actual entry into mainland China remain separate issues. In August, ByteDance and Tencent each received around 10,000 H200 chips, with some quantities reportedly allowed for use in Hong Kong.
The ongoing restrictions on large-scale imports by the Chinese government are believed to stem from its commitment to nurturing its domestic semiconductor industry. An increased reliance on Nvidia's advanced chips could hinder the growth of Chinese semiconductor firms like Huawei. The Chinese authorities are known to allow limited foreign chips for AI model training while encouraging the use of domestic semiconductors in the operational inference sector. Additionally, the Chinese government is concerned about the potential dependency of its AI ecosystem on American chips like those from Nvidia.
The shortage of H200 chips in China is also reflected in pricing. Sources indicate that as of late October, the price of servers equipped with eight H200 chips has exceeded 6 million yuan (approximately $800,000), tripling compared to a year ago. Servers equipped with the next-generation Blackwell semiconductors, which are subject to U.S. export restrictions, have surpassed 20 million yuan (approximately $2.8 million) each.
* This article has been translated by AI.
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