Nvidia suppliers have reportedly paused production after Chinese customs blocked imports of the company’s H200 AI chips, even though the processors were cleared for export by the United States. The move, reported by Reuters citing the Financial Times, has left suppliers and buyers uncertain.
Officials in China have reportedly warned local tech firms against buying the chips, without clarifying whether the restriction is temporary or a full ban. The confusion is compounded by a US requirement that the chips transit a US testing facility, triggering a 25% tariff. Analysts are split on whether allowing sales helps maintain US tech leverage or risks boosting China’s military capabilities.

