From restrictions to permissions: what China’s decision means for the artificial intelligence market
28 January 18:36
The Chinese government has allowed the country’s three largest technology companies — ByteDance, Alibaba, and Tencent — to purchase H200 artificial intelligence chips from the American company Nvidia. This was reported by Reuters, citing sources familiar with the decision-making process, according to "Komersant Ukrainian".
The total volume of permitted purchases exceeds 400,000 chips. According to the agency, other Chinese companies are also awaiting similar permits.
Why this is a sign of a policy change
Beijing’s decision signals a softening of its stance on imports of advanced semiconductors, which were previously considered a strategically sensitive area.
China is trying to balance two conflicting goals:
- on the one hand, to accelerate the development of its own artificial intelligence systems,
- on the other hand, not to undermine efforts to develop the national semiconductor industry.
Under what conditions was the import permitted?
According to Reuters sources, permission to purchase H200 was not granted unconditionally. The Chinese government agrees to imports only under certain conditions, which are still being negotiated.
Previously, regulators emphasized that Chinese companies should only purchase foreign chips in cases of critical need. One of the proposals discussed in Beijing stipulated that each purchase of Nvidia chips must be accompanied by the purchase of a certain number of domestic chips.
The role of the Nvidia CEO’s visit
According to Reuters, regulatory approvals were issued during Nvidia CEO Jensen Huang’s visit to China this week. This underscores the political and diplomatic importance of high-tech product supplies.
Geopolitical context
The H200 chip, Nvidia’s second most powerful AI chip, has become a symbol of the technological confrontation between the US and China. Although the export of these chips was permitted by the US, Beijing’s caution in opening up the market to imports remained a key obstacle for a long time.
At the same time, the shortage of advanced chips limited the ability of Chinese companies to develop large language models and competitive AI systems.
According to Reuters, a number of other Chinese companies are already in line for permits. This could signal a gradual shift by China toward a more pragmatic regulatory model, in which imports are allowed but subject to strict government control.
