A Bloomberg report, citing a source who wishes to remain anonymous, states that China is preparing to allow limited imports of Nvidia’s H200 chips within this quarter, a move that may enable Nvidia to reestablish its presence in a vital market.
According to the source, Chinese regulators are expected to grant approval for local firms to acquire these chips from Nvidia for specific commercial purposes. However, use of the H200 chips will be barred in the military, sensitive government departments, critical infrastructure, and state-owned enterprises, all due to national security considerations.
The source noted that these restrictions mirror earlier rules applied to foreign technologies, including products from Apple and Micron Technology.
Should organizations restricted under these guidelines seek access to the chips, each request would undergo individual assessment. Despite such conditions, Nvidia stands to benefit significantly, given that China remains the world’s largest market for semiconductors.
Nvidia’s Chief Executive Officer, Jensen Huang, has previously stated that sales in the AI chip segment alone have the potential to reach $50 billion in the coming years. In the period since Nvidia lost access to the Chinese market, domestic competitors such as Huawei Technologies and Cambricon Technologies have swiftly expanded and are poised to ramp up output in 2026.
It remains uncertain how broadly China will interpret the definition of critical infrastructure, especially as private sector giants like Alibaba and Baidu frequently provide cloud services to both state-owned firms and government bodies—a practice similar to that of Amazon and Microsoft in the United States.
Elevating the development of advanced semiconductors and AI models has become a top priority for China, with the government vowing a concerted national effort to surpass the U.S. in technological innovation.
During an appearance at CES in Las Vegas this week, Nvidia executives indicated that demand for the H200 among Chinese customers is notably robust. Nevertheless, they conceded that there have yet to be direct talks with Chinese authorities about the approval timeline.
Nvidia has already submitted a licensing request to the U.S. government and is currently working to finalize the remaining details of the necessary export permissions, according to company statements at CES.
Since 2022, Nvidia has effectively been barred from selling advanced AI hardware in China because of U.S. apprehensions that such technology could bolster China’s military capacity. According to CEO Jensen Huang, successive rounds of tighter American controls have seen Nvidia’s market share in China plummet from about 95% to none.
Nonetheless, the company’s broader revenue prospects remain robust. In October, Nvidia forecasted that its cumulative revenue from existing and upcoming data center chips could reach approximately $500 billion by the close of 2026—a target the firm suggested this week it may ultimately exceed.
