Nvidia suppliers have reportedly paused production after Chinese customs blocked shipments of the firm’s H200 AI chips, even though the processors were cleared for export by the United States. The move, reported by the Financial Times, has added fresh confusion to already strained US-China tech relations.
Chinese officials have not explained whether the restriction is a formal ban or a temporary measure, but domestic tech firms were reportedly warned against buying the chips. The situation is further complicated by a US rule forcing the chips to pass through American testing facilities, triggering a 25% tariff. Analysts remain divided over whether allowing such powerful chips into China is strategically wise.
