China has begun allowing ByteDance and Tencent to import Nvidia H200 processors, according to the Financial Times, with each company permitted to purchase up to 100,000 chips. The move follows months of US restrictions on the advanced AI hardware, which were first lifted for select Chinese buyers in December 2025. The approvals mark a significant step in the slow resumption of high-end chip flows to China, though Beijing is reportedly conditioning the deliveries with domestic industry goals.
The shipments are finally reaching approved firms after the US granted permission to ten Chinese companies in May to buy the H200, a processor that was already two years old by the time sales were allowed. ByteDance and Tencent are among the largest recipients, but Chinese authorities have instructed them to keep most of the chips out of mainland China. Instead, the companies are being told to route their processor orders to Hong Kong, even though they do not currently operate data centers in that region.
The Financial Times reports that the arrangement reflects China’s desire to support its own domestic chip industry, which has been expanding rapidly in response to US export controls. Local firms are developing their own AI processors to reduce reliance on foreign technology, and the government appears to be balancing the need for cutting-edge Nvidia hardware with the push for self-sufficiency. By keeping the bulk of the H200 units outside the mainland, Beijing can satisfy the immediate demand for advanced AI training while shielding its native chipmakers from direct competition.
For US technology observers, the development underscores the ongoing tension between Washington’s export restrictions and the commercial appetite for Nvidia’s products in China. The US originally banned H200 sales over concerns that the chips could boost China’s military capabilities, only to begin approving exceptions in late 2025. Reuters reported in January that China had agreed to import several hundred thousand H200 units, a figure that now appears to be moving through the pipeline in tranches.
The specific allocation of 10,000 chips per company, as referenced in the headline, is not detailed in the source material, which instead cites the 100,000-unit cap for each firm. The discrepancy is not explained, but the approval process remains tightly controlled by both governments. ByteDance and Tencent, two of China’s largest tech conglomerates, are now positioned to leverage the H200 for advanced AI model training, albeit with logistical complications given the Hong Kong routing requirement.
The broader picture is that China’s chip sector is booming, with local players racing to close the gap with US designs. The H200 imports, while significant, are being managed in a way that does not undercut that domestic push. Whether the Hong Kong-based deliveries will eventually be moved into the mainland or used for offshore AI operations remains unclear from the available facts. For now, the approved companies have access to the hardware they sought, but under conditions that reflect Beijing’s strategic priorities.
