ByteDance and Tencent have reportedly begun receiving shipments of NVIDIA H200 chips, with each company obtaining 10,000 units. This development follows reports that China is relaxing import restrictions to bolster its domestic AI capabilities.
The H200 chips are intended to help these companies train advanced AI models, enabling them to enhance their competitive position against American technology firms.
The US government had previously imposed a ban on H200 sales to China, citing concerns that the technology could be used to advance the country's military capabilities. In December 2025, NVIDIA was permitted to sell H200 processors to approved Chinese customers, though the chips were already two years old at that point.
Earlier reports indicated that China agreed to import hundreds of thousands of H200 chips, and in May, the US reportedly granted permission to 10 Chinese firms, including ByteDance and Tencent, to purchase these processors.
While ByteDance and Tencent are authorized to purchase up to 100,000 chips each, China is reportedly encouraging companies to keep most of these processors outside the mainland. This strategy aims to foster the growth of China's domestic chip industry.
Chinese authorities have advised companies to direct their chip orders to Hong Kong, even though these companies currently lack data centers in the region. This directive aligns with China's efforts to reduce reliance on foreign products and respond to US export controls by developing its own AI chip technology.
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