China signals approval for Nvidia H200 chip orders by major tech firms

China has told its biggest tech companies to get ready to place orders for Nvidia H200 AI chips, a step that points to an approval decision getting close. Alibaba, Tencent, and ByteDance were informed that they can move ahead with preparation work tied to these purchases.

Regulators have already issued early clearance for the firms to begin the next phase. That clearance allows talks on volumes, timing, and delivery planning.

Officials have also told the companies they will need to include some domestic chips in their buying plans. No fixed number has been shared. The requirement is meant to support local suppliers while foreign chips are allowed back in.

Regulators clear companies to plan H200 purchases

The chip in question sits one generation behind Nvidia’s most advanced models. Even so, the H200 is powerful enough to train and run large AI models used by major cloud platforms.

The approval process shows China is focusing on the needs of hyperscale operators that are spending billions to build data centers. These centers support search tools, recommendation engines, and new AI products rolled out across consumer apps.

News of the talks pushed Nvidia shares up as much as 2.3 percent in premarket trading. American depositary receipts of Taiwan Semiconductor Manufacturing Co. rose 1.3 percent. TSMC produces chips for Nvidia, so any renewed shipments have a direct impact on its order flow.

The talks also highlight how central the H200 has become in U.S.-China trade negotiations. The chip falls under rules set by the Trump administration that still allow exports of older hardware.

At the same time, Washington continues to block sales of Nvidia’s most advanced processors on security grounds.

For Nvidia, this opening matters. The company has spent months trying to regain access to the market after restrictions cut off sales. Jensen Huang has said the AI chip business alone could reach $50 billion in the coming years. That revenue has become a key reference point for investors watching the company’s recovery path.

Jensen Huang plans visit as questions remain over access

Jensen Huang, Nvidia’s chief executive, plans to travel to China ahead of the mid-February Lunar New Year. Two people told CNBC the visit will include a stop in Beijing for a company event. Jensen is also expected to meet potential buyers during the trip and discuss shipping challenges tied to U.S.-approved products.

Those challenges have slowed deliveries in recent months. Even when chips are cleared for sale, routing them into China has proven difficult. Supply chains have faced paperwork delays and transport issues that add weeks to timelines.

The Chinese market once made up at least one-fifth of Nvidia’s data center revenue. That share fell sharply after export controls took effect. Since then, local firms such as Huawei and Cambricon expanded output and filled gaps left by foreign suppliers.

Both companies have announced plans to ramp production further as demand for AI hardware keeps rising.

Last week, The Information reported that authorities would only allow H200 purchases for limited uses such as research.

When asked about that report, the Commerce Ministry said it was unaware of the situation. Officials have not made any public statement confirming whether imports will be approved.

At the same time, China is pressing ahead with a self-sufficiency drive. The government is preparing incentives that could total as much as $70 billion for the chip sector. The policy push aims to cut reliance on overseas suppliers while keeping major tech platforms running.

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