China bans NVIDIA's H200 AI chip, turning up the heat in tech rivalry
Business
China just blocked imports of NVIDIA's powerful H200 AI chip, even though the US recently eased export rules for it.
The move comes after the US shifted to a case-by-case review for these chips, but added strict conditions like supply caps and extra checks.
Why does it matter?
This ban is China's way of pushing for homegrown AI tech and closing loopholes in US export policy.
It could affect Chinese tech firms such as Alibaba and Tencent—Chinese customers had placed orders for over 2 million H200 units, and some are reportedly canceling.
Plus, it ramps up the ongoing chip war between China and the US, which could slow down China's progress in advanced AI development.