Nvidia shares jump as China clears H200 imports
Nvidia stock rose after reports that China has cleared the way for companies such as ByteDance, Alibaba and Tencent to purchase Nvidia’s advanced H200 artificial-intelligence (AI) chips. The move follows an earlier decision by the U.S. administration, which had permitted H200 exports to China, while Chinese firms awaited governmental sign-off. Regulators in Beijing had originally been reluctant to green-light the imports, citing concerns that the chips could erode the competitiveness of domestic manufacturers like Huawei. During a visit to China by Nvidia CEO Jensen Huang, officials shifted their stance and approved the shipments.
China’s Approval of H200 Imports
The initial approval covers more than 400,000 H200 units, an amount valued at roughly $10 billion. ByteDance, Alibaba and Tencent are positioned at the front of the queue, with additional local companies slated to follow. Sources say the clearance is tied to a bundle ratio that obliges importers to purchase a set share of home-grown AI chips for every Nvidia part they bring in.
The H200 is a significant leap over the “nerfed” H20 chips previously available to the Chinese market. It offers approximately six times the performance of the H20, making it essential for training the massive Large Language Models (LLMs) required to compete with Western entities like OpenAI. In a social-media post, former President Donald Trump noted that the exports are allowed “under conditions that allow for continued strong National Security,” and added that “President Xi responded positively!”
The export license specifically targets the Nvidia H200 accelerator, which ranks as the company’s second-most powerful AI processor. More advanced families, such as the Blackwell and the upcoming Rubin series, will stay unavailable to Chinese customers, preserving a technological lead for the United States.
Nvidia’s Relief and Market Share
Resuming shipments to China represents a major relief for Nvidia, which has faced severe constraints in the lucrative market since the original export controls were enacted. Huang has urged the administration to ease the rules, arguing that overly tight limits only accelerate China’s own domestic AI chip program and ultimately weaken U.S. leadership.
During the fiscal Q1 2026 earnings call, chief financial officer Colette Kress warned that losing access to the Chinese AI accelerator market would have a material adverse impact on the company’s future business.
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Reports have surfaced alleging that top-tier Nvidia AI chips are being smuggled into China despite the restrictions. According to the claims, DeepSeek is using restricted Blackwell chips that entered the country through a complex network involving data centers located in permitted jurisdictions.
Nvidia has refuted those allegations, stating it has “not seen any substantiation or received tips” to support the smuggling narrative. The firm emphasizes that its partners are expected to follow all relevant regulations.
The controversy has drawn attention to Nvidia’s billing practices in Singapore, where a sizable portion of the company’s revenue is recorded. Officials clarified that the invoiced amount does not correspond to the physical destination of the chips, and that most shipments linked to the Singapore figure were destined for locations elsewhere.
Singapore’s Ministry of Trade and Industry added that the actual delivery of products to the city-state represents only a tiny share of the revenue billed there. Nevertheless, authorities have opened investigations to determine whether Singapore-based intermediaries were used to route restricted components illegally to Chinese firms.
The Chinese government is advancing a Military-Civil Fusion strategy that aims to blend private-sector innovation with the People’s Liberation Army. The Chinese government consistently denies that it forces companies to illegally collect or transfer data in violation of laws. Chinese officials typically state that all data collection and transfer are conducted “in accordance with the law” and emphasize that its laws also include provisions to protect data and user privacy, like the PIPL. They view foreign concerns as unfounded accusations aimed at hindering the growth of Chinese businesses.
