Nvidia suppliers have reportedly paused production after Chinese customs officials blocked shipments of the company’s H200 AI chips from entering China, according to a report cited by Reuters. The move comes despite the chips having been cleared for export by the United States government.
Sources said Chinese authorities warned domestic tech firms against buying the processors without explaining whether the restriction is temporary or a full ban. The situation is further complicated by a US requirement that the chips pass through American testing facilities, triggering a 25% tariff. Analysts remain split over whether allowing the powerful AI chips into China poses strategic or security risks.
