China has asked several domestic technology companies to pause new orders for Nvidia’s H200 data centre chips, according to a report published by The Information, citing people familiar with the matter. The request was issued during a period of heightened scrutiny over technology trade between Beijing and Washington, as both governments continue to impose controls and conditions on the flow of high-end semiconductor products. The move comes at a time when Chinese firms are seeking access to computing hardware for data processing and automation tasks, while regulators weigh how much reliance on foreign chip suppliers should be permitted under current policy goals.
The reported request from Beijing follows months of policy adjustments and trade negotiations involving semiconductor exports from the United States to China. Washington has tightened oversight of chip shipments that can be used for data processing at scale, citing national security concerns. Beijing, in response, has increased support for local chip producers and signalled that domestic supply should take priority where possible. These parallel efforts have placed foreign suppliers, including Nvidia, in a position where commercial demand exists but regulatory approval remains uncertain on both sides.
According to The Information, Chinese authorities have asked some technology companies to stop placing fresh orders for Nvidia’s H200 chips while the government considers whether and under what terms access to the product should continue. The request is reported to be temporary, but it has created uncertainty for buyers that had been preparing to expand data centre capacity using imported hardware. The pause is intended to prevent companies from stockpiling foreign chips before Beijing reaches a final decision on policy conditions.
Nvidia has found itself caught between competing regulatory systems as a result of these developments. The company designs chips in the United States and relies on approval from U.S. authorities for exports to China. At the same time, Chinese buyers must receive clearance from domestic regulators to deploy such products. This dual approval process has added layers of risk for both Nvidia and its customers, particularly after previous restrictions were imposed and then partially eased.
Tensions over technology trade have remained a central feature of relations between the United States and China for several years. Semiconductors have become a focal point because of their role in data centres, communications systems, and defence-related infrastructure. Export controls, licensing rules, and compliance checks have been adjusted repeatedly, often with limited notice. These changes have affected shipment timelines, pricing terms, and inventory planning for suppliers and buyers alike.
China’s reported request to halt H200 orders was issued as regulators continue internal discussions on how to manage access to foreign chips. The Information said officials are examining whether Chinese companies should be required to purchase a set volume of domestically produced chips alongside any imported products. Such conditions would be intended to support local manufacturers while still allowing limited access to foreign hardware where domestic supply falls short.
Beijing is also seeking to discourage companies from placing large orders in anticipation of future restrictions. Officials are concerned that a rush to buy imported chips could weaken policy efforts aimed at building local capacity. By asking firms to pause orders, regulators are attempting to maintain control over import volumes while negotiations and assessments continue.
A spokesperson for the Chinese Embassy in Washington, Liu Pengyu, addressed the issue in a statement. He said China remains committed to basing its national development on its own strengths and is willing to maintain dialogue and cooperation with all parties to safeguard the stability of global industrial and supply chains. The statement did not directly confirm the reported request to halt orders but restated China’s broader policy position.
Nvidia did not immediately respond to requests for comment from news agencies. China’s Ministry of Commerce and the Ministry of Industry and Information Technology also did not respond to inquiries outside regular business hours. The lack of immediate confirmation from officials has left companies relying on media reports and informal guidance as they plan procurement and investment decisions.
Earlier this week, Nvidia Chief Executive Officer Jensen Huang said demand in China for the H200 chip remained strong. Speaking at the Consumer Electronics Show in Las Vegas, Huang said the company views purchase orders as an indication that shipments are permitted, rather than expecting a formal public announcement from Beijing. His comments were made before reports emerged that Chinese authorities had asked firms to pause new orders.
U.S. export licenses for the H200 chip are still under review, with no fixed timeline for completion. Approval from Washington is required before shipments can proceed, even if Chinese regulators allow purchases. The licensing process has been a source of delay in the past, with applications sometimes taking months to resolve. This has complicated planning for both Nvidia and its customers.
Late last year, the administration of U.S. President Donald Trump approved the export of Nvidia’s H200 chips to China. The decision marked a reversal from earlier bans that had restricted the sale of similar products. The approval was granted under specific conditions, including a requirement that Nvidia pay a 25 percent revenue-sharing fee to the U.S. government on sales of the chip to Chinese customers.
The H200 chip is positioned below Nvidia’s current flagship Blackwell products. It was developed as an option that could meet U.S. export requirements while still offering higher data processing capacity than models previously permitted for sale in China. The chip has been marketed to operators of large data centres and cloud service providers seeking to expand computing capacity.
Despite the approval from Washington, China had earlier banned Nvidia’s H20 chip, which was designed specifically to comply with earlier U.S. export limits. That ban resulted in Nvidia writing down $5.5 billion in inventory after shipments were blocked. The experience has made the company more cautious in its dealings with the Chinese market.
According to Reuters, Nvidia has introduced stricter payment terms for Chinese customers ordering H200 chips. The company is requiring full payment in advance, with no refunds or order changes once a purchase is confirmed. In some cases, buyers may be allowed to substitute insurance or asset-backed guarantees in place of cash, but the terms remain tighter than in previous years. These measures are intended to shift financial risk away from Nvidia in case shipments are delayed or denied.
Chinese technology companies have reportedly placed orders for more than two million H200 chips, each priced at around $27,000. This volume exceeds Nvidia’s current available inventory, which has been estimated at about 700,000 units. The gap between orders and supply has raised questions about delivery schedules and allocation priorities, especially if regulatory approvals remain uncertain.
Domestic alternatives remain part of China’s long-term strategy. Local chip producers, including Huawei, have developed products aimed at serving similar data processing needs. While these products have been adopted in some applications, industry sources say they have not fully replaced demand for Nvidia’s offerings in large-scale deployments. Beijing has announced plans to allocate up to $70 billion in incentives and support measures to strengthen the domestic semiconductor industry.
Market reactions to the reports have been cautious. Nvidia shares showed limited movement following the news, as investors weighed the impact of potential delays against existing approval from U.S. authorities. Analysts have noted that revenue from China remains an important but uncertain component of Nvidia’s overall sales, given the shifting regulatory environment.
Bloomberg reported separately that China may approve some H200 imports as early as this quarter for select commercial uses. The report said access would likely come with conditions, including requirements tied to domestic procurement or usage limits. No official confirmation has been issued, and companies have been advised to wait for formal guidance.
Huang has said he does not expect a formal announcement from Chinese authorities regarding approval. He told reporters that the ability of customers to place orders would indicate whether shipments are allowed. His comments suggest that Nvidia is continuing to process orders while monitoring regulatory developments on both sides.
