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Nvidia H200 AI chip approval in China faces delays as Jensen Huang visits amid customs restrictions and rising tech sector uncertainty.

Nvidia CEO Jensen Huang arrived in Shanghai on Friday at a sensitive moment for the U.S. chipmaker, as Chinese authorities block imports of its H200 artificial intelligence chips without giving a clear reason.

Huang’s visit, which includes stops in Beijing, Shenzhen, and Taiwan, comes as Nvidia waits for Beijing’s final decision on whether the advanced chips will be allowed into the Chinese market.

Chinese customs officials recently informed a Shenzhen-based logistics firm that the H200 chips were not permitted to enter the country. The move surprised Nvidia, especially as early shipments had already reached Hong Kong earlier in the week.

No official explanation has been offered, leaving uncertainty over whether the restriction is temporary or signals a longer-term policy shift.

The customs action has already affected the supply chain. Suppliers producing components for the H200 reportedly paused production around January 17, following the block.

The disruption adds pressure to Nvidia, which had expected a smoother rollout after securing U.S. export approval earlier this year.

The United States approved exports of the H200 to China in early January, following a policy change under the Trump administration.

Under the revised rules, Nvidia can sell the chips to China under strict conditions. These include limits on volumes, a cap tied to U.S. sales, and certification that domestic demand in the U.S. is adequately met.

The approval followed months of lobbying by Huang, making the Chinese customs response particularly unexpected.

The uncertainty is rippling across China’s technology sector.

Major firms such as Alibaba, Tencent, and ByteDance are reassessing their chip orders and have been advised to consider domestic alternatives.

At the same time, Chinese regulators have reportedly given these companies provisional approval to prepare H200 orders, on the condition that they also purchase a set share of locally produced chips.

Beijing is expected to limit how the H200 chips can be used if approved.

Reports suggest the processors would be barred from deployment by the military, sensitive government agencies, critical infrastructure operators, and state-owned enterprises.

China remains a key market for Nvidia. The country previously accounted for over 20 percent of the company’s data centre revenue.

Despite restrictions on its most advanced chips, Nvidia recorded $17.1 billion in sales of lower-tier AI processors to Chinese customers in 2024.

Huang has maintained close engagement with China, visiting several times in recent years and meeting the country’s commerce minister last July.

On Friday, Huang was seen visiting a local market in Shanghai before attending Nvidia’s annual employee event.

Analysts say Beijing’s decision on the H200 will be closely watched, as it could shape the next phase of global AI chip competition. The outcome will likely reflect China’s effort to balance access to advanced technology with its long-term goal of semiconductor self-reliance.