Nvidia suppliers have reportedly paused production after Chinese customs blocked shipments of the company’s H200 artificial intelligence chips, even though the processors were cleared for export by the United States.
According to the Financial Times, Chinese officials told customs agents the chips could not enter China, without explaining whether the move is temporary or a formal ban. Authorities have also reportedly warned domestic tech firms against buying the chips unless essential.
The confusion deepens as the US has approved exports but required the chips to pass through US testing facilities, triggering a 25% tariff. Analysts remain split on whether selling the powerful H200 to China weakens or strengthens US strategic interests.

