China Rejects Nvidia H200 Chip Purchases Despite U.S. Approval

China has reportedly decided not to move forward with purchases of Nvidia’s H200 artificial intelligence chips despite receiving approval from the United States, signaling Beijing’s continued focus on strengthening its domestic semiconductor industry.

President Donald Trump said after his meeting with Chinese President Xi Jinping that China “chose not to” approve purchases of the advanced chips because the country wants to build its own technology capabilities. His comments came after reports that nearly 10 Chinese companies had received U.S. approval to buy H200 chips.

Major Chinese firms reportedly cleared under the U.S. framework include Alibaba, Tencent, ByteDance and JD.com. Distributors Lenovo and Foxconn were also approved to support shipments.

Beijing Prioritizes Homegrown Semiconductor Development

Although Washington approved exports, no H200 chips have reportedly been shipped to China. U.S. officials said the next step depends on Beijing’s approval.

Nvidia Faces Ongoing Challenges in China

Commerce Secretary Howard Lutnick previously said China blocked imports to encourage investment in local chipmakers such as Huawei. Nvidia CEO Jensen Huang reportedly joined Trump’s China visit at the last minute, raising hopes for progress, but no breakthrough was announced.

Analysts estimate restored H200 sales could add between $3.5 billion and $4 billion in yearly revenue for Nvidia, whose China market share has dropped sharply in recent years.