China Asks Firms Pause Nvidia H200 Orders, Boost Local Chips

China Reportedly Urges Domestic Firms to Pause Orders for Nvidia H200 Chips

  • Chinese authorities have asked domestic tech firms to pause new orders for NVIDIA’s H200 AI chips.
  • U.S. export rules now allow the H200 to be sold to China if a 25% fee is paid.
  • Chinese buyers reportedly placed orders for more than 2 million H200 units for 2026, well above current supply capacity of about 700,000 units.
  • Nvidia CEO Jensen Huang said *“demand in China for the company’s H200 AI chips is very strong,”* and the company has restarted production while finalizing export approvals.
  • Chinese policy is shifting toward greater reliance on domestically produced semiconductor technology.

Chinese authorities have told domestic technology firms to halt new purchases of Nvidia Corp. H200 processors, according to a report published in early January 2026. The request is part of broader efforts to increase dependence on locally made semiconductor technology.

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In early December, U.S. officials approved exports of the H200 to China on the condition that buyers pay a 25% fee, a move documented in the same report. After that decision, Chinese firms reportedly placed orders for more than 2 million H200 chips slated for delivery in 2026, while Nvidia can currently supply roughly 700,000 units.

Nvidia shares traded higher mid-morning following the reports, and the stock has risen more than 35% over the past 12 months. Market sentiment among retail investors also shifted toward greater optimism in public forums.

A separate account linked to company remarks said Jensen Huang noted strong demand in China and that Nvidia has restarted production and is finalizing export approvals with U.S. officials, according to a separate report. The H200 remains the highest-level graphics processor allowed under current U.S. rules, and its availability is now a focal point in China’s push to bolster domestic chip capabilities.

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