Nvidia suppliers have reportedly stopped production after Chinese customs blocked shipments of the firm’s H200 AI chips from entering China, according to a report cited by Reuters. The move comes despite the chips being cleared for export by the United States government.
Chinese officials have allegedly warned domestic tech companies against buying the processors and offered no clear explanation, leaving uncertainty over whether the restriction is temporary or a de facto ban. The situation is further complicated by US rules requiring the chips to transit through American facilities, triggering a 25% tariff.
The H200 has become a flashpoint in US-China tech tensions, with analysts divided over whether exporting such powerful AI chips strengthens US leverage or risks boosting China’s military and technological capabilities.
