About 600,000 of Nvidia’s advanced artificial intelligence chips are sitting in Hong Kong awaiting shipment to mainland China, as Beijing withholds approval for large-scale imports despite strong demand from Chinese technology companies, Reuters reports.
The stockpile comprises Nvidia’s H200 processors, which are among the company’s most powerful AI chips. Two people familiar with the matter told Reuters that the volume of chips awaiting shipment had not previously been reported.
The development highlights China’s struggle to balance its need for advanced computing technology with efforts to reduce dependence on American semiconductor suppliers amid ongoing trade and technology tensions with Washington.
Although Beijing has yet to approve large-volume imports, China has allowed some H200 chips into the country in recent months, according to three people familiar with the matter.
Several major Chinese internet companies have each received approval to obtain about 10,000 units, one of the sources said. Small quantities have also entered mainland China through intermediaries and indirect shipping routes, although the sources did not disclose the exact number.
China’s Ministry of Industry and Information Technology and the National Development and Reform Commission did not respond to requests for comment. Nvidia and major Chinese technology companies, including Alibaba, ByteDance, DeepSeek and Tencent, also did not respond.
The H200 is not Nvidia’s newest AI processor, but its computing capabilities remain ahead of those of Chinese alternatives. Its compatibility with Nvidia’s software also makes it valuable for training artificial intelligence models.
Since 2022, US export controls have restricted China’s access to advanced Nvidia chips and the equipment required to manufacture them. The restrictions have pushed Chinese buyers towards intermediaries and unofficial supply channels, driving up prices.
See also: Google, Meta, TikTok Take California to Court Over New Child Social Media Law
An eight-card H200 server was being offered for more than 6 million yuan, approximately $900,000, in mainland China by the end of October, about three times its price a year earlier, one person familiar with the matter said.
Servers powered by Nvidia’s newer Blackwell chips, which remain subject to US export restrictions, were being offered for more than 20 million yuan each, the source added.
Washington initially barred H200 exports to China before President Donald Trump’s administration granted Nvidia permission last year to sell the processors to approved Chinese customers following trade negotiations between the two countries.
Reuters reported in May that the US had authorised H200 sales to 10 Chinese companies, including Alibaba, Tencent and ByteDance.
However, Beijing has introduced its own restrictions on imports, reflecting concerns about the country’s growing reliance on American technology.
The Information reported in July that Chinese officials had informed companies, including Alibaba, ByteDance and DeepSeek, that they could receive approval to purchase limited quantities of H200 chips for AI model training.
The publication said the total number of approved chips could be fewer than 200,000, while Beijing wanted Chinese firms to prioritise domestic processors for inference, the process through which trained AI models generate responses and perform tasks.
Despite the restrictions, demand for Nvidia hardware remains strong among Chinese technology companies. Reuters reported last month that ByteDance, Alibaba and Tencent had ordered more than three million Nvidia RTX Pro 5500 graphics cards, with a combined value exceeding $35bn.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
