China reportedly blocks NVIDIA H200 chips that Trump cleared for export

Customs officials order shipments stopped at the border just days after the U.S. lifted export ban.

Suppliers Forced to Pause Production

The Chinese government has reportedly moved to block the entry of Nvidia H200 chips, effectively rejecting a landmark export deal brokered by the Trump administration. Despite the White House granting formal clearance for the chips earlier this week, Chinese customs authorities have issued a "severe" directive to agents, stating that the high-end processors are not permitted to cross the border.

The move has sent shockwaves through the global supply chain, with parts manufacturers for the H200, including dedicated printed circuit board (PCB) suppliers, immediately halting production to avoid a massive inventory crisis.

New twist to the US-China Silicon trade war

The situation has created a bizarre regulatory paradox where the United States is now willing to sell, but China is suddenly unwilling to buy.

Reports indicate that Chinese customs officials summoned logistics companies in Shenzhen and other hubs, using language so firm that sources described it as a "de facto ban for now."

Domestic tech giants, including Alibaba, Tencent, and ByteDance, were reportedly summoned to high-level meetings where they were instructed to "prioritize domestic options" and refrain from purchasing the H200 unless it is deemed "absolutely necessary" for specific R&D.

NVIDIA had anticipated orders for over 1 million H200 units from Chinese clients (representing an estimated $27 billion to $30 billion in potential revenue). With the blockade in place, those orders are now in limbo.

Experts explain China’s decision

The H200 is roughly six times more powerful than the H20 chips China previously relied on, making Beijing's refusal to let them in a puzzling strategic choice. Analysts point to three primary motivations:

Semiconductor sovereignty: Beijing is using the blockade to force its tech giants to adopt homegrown AI processors, such as Huawei’s Ascend series, to ensure the country isn't reliant on American technology that can be switched off by a future U.S. administration.

The "Trump surcharge" pushback: The Trump administration’s approval came with a 25% tariff (or "revenue sharing" fee) that would flow directly to the U.S. Treasury. Beijing may be unwilling to allow its tech industry to effectively "tax itself" to fund the U.S. government.

Bargaining power: With President Trump scheduled to visit Beijing in April 2026, analysts suggest China is using the H200 as a "geopolitical chessboard" piece, withholding approval to extract broader concessions on other trade or technology controls.

Supply chain paralysis

The impact on the manufacturing sector was immediate. Because many H200 components are highly specialized and cannot be repurposed for other chips, suppliers have been forced to "kill" production lines.

"The PCB for the H200 is a dedicated part; it cannot be used for other products," noted an analyst at SemiAnalysis. "If production continues while the border is blocked, the losses for suppliers will be catastrophic."

Looking forward

While some "special circumstances" (such as university research) may still see limited H200 arrivals, the broader market remains paralyzed. For now, the world's most sought-after AI hardware is caught in a legal no-man's-land cleared by Washington, but rejected by Beijing.