Despite US Approval for Nvidia Chip Exports, China Effectively Restricts Imports

US Shifts Review Policy from "Presumption of Denial" to "Case-by-Case Review"
China Issues Import Guidelines Allowing H200 Chips Only in "Special Cases"

The Information reported on January 13 (local time) that the Chinese government has decided to grant approval for the purchase of Nvidia's H200 artificial intelligence (AI) chips only in special cases and under limited circumstances. While the United States has opened the way for exports of the H200 chip to China starting from this day, China is effectively implementing import control measures.

According to The Information, citing multiple sources, the Chinese government has notified technology companies that the H200 chip can only be used in special situations, such as at university research institutes.

Reuters Yonhap News

Additionally, technology companies were given ambiguous guidance to purchase Nvidia chips only "when necessary." Foreign media interpreted this as a de facto import restriction. Initially, China considered requiring companies purchasing the H200 to also buy a designated proportion of domestic AI chips, but has now introduced even stricter regulations.

This move appears to reflect the Chinese government's decision to prioritize fostering its domestic semiconductor industry, including companies like Huawei and Cambricon, over developing AI using Nvidia's cutting-edge chips.

However, Chinese authorities have not provided specific guidelines on what constitutes a "necessary" case, maintaining an ambiguous stance. The Information interpreted this as leaving open the possibility that the Chinese government could relax these guidelines if China-U.S. relations improve in the future.

The Chinese government plans to hold additional meetings with more companies to communicate its guidelines on AI chip purchases, but sources said it is uncertain whether new guidelines will be issued.

Meanwhile, despite China's effective import control measures, the United States has completed the process of revising its rules to allow the export of H200 chips to China.

On this day, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) published a "Revised Licensing Policy for Advanced Computing Items" in the online Federal Register. The main point is to ease the licensing policy for exports of Nvidia's H200 chips, equivalent products, and lower-tier products to China and Macau, shifting from a "presumption of denial" to a "case-by-case review."

As a result, H200 chips, which previously could not be exported to China, can now be exported under individual review, provided there is no shortage of supply within the United States and strict customer verification procedures are implemented according to the regulations.