China Grants ByteDance, Alibaba, and Tencent Approval to Import Nvidia H200 AI Chips

China Grants ByteDance, Alibaba, and Tencent Approval to Import Nvidia H200 AI Chips January 28, 2026 In a significant development for the global AI hardware supply chain, the Chinese government has granted approval for three of its leading technology firms—ByteDance, Alibaba, and Tencent—to purchase Nvidia's advanced H200 graphics processing units (GPUs). This move comes amidst a complex geopolitical landscape and intense global competition for high-performance computing resources essential for training and running cutting-edge artificial intelligence models. According to a Reuters report citing people familiar with the matter, the initial approvals cover the purchase of more than 400,000 H200 chips in total for the three companies. The decision follows the formalization of U.S. export regulations earlier this month, which permit Nvidia to sell the H200 to approved customers in China on a case-by-case basis under strict conditions. These provisions, not previously detailed, mandate that chips be tested in third-party labs to verify their capabilities before export. Furthermore, exports are capped at less than 50 percent of the volume supplied to U.S. customers and are only permitted when there is "sufficient supply" within the United States. The scale of demand from China is substantial. Reuters previously reported that Chinese customers had placed orders for over two million H200 chips, a figure that far exceeds Nvidia's current supply, which the publication estimated to be around 700,000 units. While the initial green light for ByteDance, Alibaba, and Tencent is a critical step, sources indicate that subsequent approvals for other companies will be contingent on meeting certain, yet-to-be-determined conditions. However, one source suggested that the current licensing terms are viewed as overly restrictive by some, potentially hindering the conversion of approvals into actual purchases. The approvals carry major implications for the AI industry in China and globally. For Chinese tech giants, securing access to the H200, which offers significant performance improvements for AI workloads, is crucial for maintaining competitiveness in generative AI and large language model development. The reported move also indicates a calibrated approach by Chinese regulators, who have simultaneously asked domestic tech firms to pause new GPU orders while they deliberate on mandating a purchase ratio between imported H200s and Chinese-made AI chips. This balancing act reflects the broader tension between accessing world-leading technology and fostering domestic semiconductor self-sufficiency. Source: datacenterdynamics