While there is no official word from Beijing at the moment, reports as recently as Tuesday had indicated that the import of these chips would be allowed under “special circumstances.” This might seem like a blow to Nvidia and the various Chinese companies that are raring to get their hands on the H200, but the wording is vague enough that it’s plausible that they could still be allowed to acquire them. However, this latest news of customs blocking the chip is a seismic development that would dampen any hopes of Nvidia re-entering the Chinese market.
It isn’t clear yet why this directive, which is yet to be officially confirmed, may have been handed down. After all, Beijing is in a tight race with Washington, D.C., for AI supremacy, with the two rivals competing to see which one will achieve global dominance in the space. It’s also looking to build up its own semiconductor industry so that it can break away from its dependence on American tech stacks. Alternatively, China could use such a directive as a bargaining chip to win more concessions from the U.S., especially as President Donald Trump is set to visit Beijing in April.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/chinese-customs-told-to-block-h200-imports-report-claims-directive-would-effectively-ban-the-nvidia-ai-chip-from-china#main
- https://www.tomshardware.com
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