During a recent visit to Taiwan, Nvidia CEO Jensen Huang confirmed that the Chinese government has not yet approved the import of the company’s H200 AI chips. This ongoing situation has effectively put Nvidia’s business around the H200 on hold in the Chinese market.
Despite earlier rumors suggesting possible agreements, Huang made it clear that China is still deciding on its official position. As a direct result of this uncertainty, Nvidia has not received any new orders from Chinese companies.
“I’m hoping that the Chinese government would allow Nvidia to sell the H200,” Huang said, adding that Nvidia is remaining patient while authorities continue to review the situation.
Strong Demand, But Growing Barriers
The H200 plays a key role in Nvidia’s long-term strategy. Although demand in China is described as “very high,” the company faces a double challenge. On one hand, US export restrictions limit China’s access to advanced technology. On the other, China appears to be prioritizing the development of its own domestic hardware to reduce reliance on Western suppliers.
This shift puts additional pressure on Nvidia, which risks losing ground in one of the world’s most important AI markets.
Market analysts warn that Nvidia’s market share in China could fall sharply — from around 66% to as low as 8% — if the country fully commits to domestic hardware and blocks Nvidia from selling its AI accelerators locally. For Nvidia, securing approval would not only provide financial relief, but also help preserve the relevance of its CUDA software ecosystem as local alternatives continue to evolve.
