Nvidia shares jump as China clears H200 imports
Nvidia stock climbed on Thursday after reports that Chinese regulators had cleared the import of the company’s H200 artificial-intelligence chips. The move follows a U.S. export license granted earlier by the administration of former President Donald Trump, which had allowed the chips to be shipped pending a domestic approval.
China Approves First Batch of H200 Chips
According to sources, the initial approval covers more than 400,000 H200 units. The first customers listed are ByteDance, Alibaba and Tencent, with other firms expected to line up behind them.
Regulators attached a condition that for each imported H200, companies must purchase a set share of locally produced AI accelerators, such as Huawei’s Ascend series. This requirement aims to protect domestic chipmakers while still granting access to the higher-performance hardware.
The H200 represents a major step up from the earlier H20 version, delivering roughly six times the processing power needed for training large language models.
In a social-media post last month, Trump noted that the export license was issued “under conditions that allow for continued strong national security,” adding that President Xi had responded positively.
Implications for Nvidia and the AI Market
The licensing agreement specifies that shipments will go only to “approved commercial customers,” with the Department of Commerce handling the final vetting. The agency has not disclosed the full list of approved entities, but it confirmed that the process is underway.
During the fiscal Q1 2026 earnings call, CFO Colette Kress warned that losing access to China’s AI accelerator market—projected to reach nearly $50 billion—would have a material adverse impact on Nvidia’s business and could benefit foreign competitors.
While the H200 is now permitted, the more advanced Blackwell and upcoming Rubin families remain barred, preserving a technology edge for U.S. firms. Nvidia has emphasized that its partners must comply with all applicable export rules.
Separately, there have been recurring allegations that restricted Nvidia chips have entered China through complex smuggling operations. Reports claim the startup DeepSeek used Blackwell chips that were allegedly routed via data centers in third-party countries before being re-exported in pieces.
Nvidia has denied any knowledge of such activities, stating it has not received credible tips or evidence. The company stresses that its partners are expected to follow export-control laws.
Revenue from sales billed through Singapore has drawn scrutiny, as filings show a sizable share of Nvidia’s income recorded there. Both U.S. and Singaporean authorities are investigating whether intermediaries used the hub to bypass export restrictions.
Singapore’s Ministry of Trade and Industry noted that physical shipments to the city-state constitute less than one percent of the billed amount, and that most deliveries are destined for customers elsewhere.
Police in Singapore have recently arrested individuals linked to fraud involving the illegal re-export of graphics-processing units, indicating increased enforcement focus on such trade routes.
Civil-Military Fusion and Data Policy
The Chinese Communist Party promotes a civil-military fusion strategy that blends private-sector AI advances with the People’s Liberation Army’s needs.
State representatives repeatedly deny any requirement for firms to transfer data illegally, framing foreign concerns as attempts to hinder Chinese growth.
Alibaba’s Semiconductor Push
Alibaba has secured a contract with state-owned China Unicom to supply its home-grown AI chips for a new data-center deployment.
Simultaneously, Alibaba is preparing to spin off its semiconductor arm, known as T-Head or Pingtouge, with plans for a public listing.
