Nvidia suppliers have reportedly stopped production after Chinese customs blocked imports of the company’s H200 artificial intelligence chips, even though the processors were cleared for export by the United States.
According to reports cited by Reuters, Chinese officials have also warned domestic tech firms against buying the chips, without clarifying whether the move is a formal ban or a temporary restriction. Nvidia had expected large orders from China, with shipments planned for early 2026.
The situation is further complicated by US rules requiring the chips to pass through American testing facilities, triggering a 25% tariff. Analysts say the standoff reflects growing US-China tensions over advanced technology and uncertainty over whether Beijing aims to curb reliance on foreign AI chips or use the issue as leverage in trade negotiations.
