About 600,000 of Nvidia's advanced artificial intelligence chips are stored in Hong Kong awaiting shipment to mainland China, two people familiar with the matter said, as Beijing withholds approval for large-scale imports despite demand from technology firms. The size of the stockpile of H200 chips, which has not previously been reported, reflects Beijing's reluctance to increase reliance on US technology.
At the same time, Chinese companies need Nvidia's advanced computing power to meet surging AI demand in the world's second-largest economy. China has allowed some of the chips to enter the country in recent months, three people familiar with the matter said.
Several major Chinese internet companies have each obtained about 10,000 H200 chips in the past few months, one of the people said. Three people said small quantities of chips had been shipped via intermediaries and indirect routes without specifying how many.
But Beijing has yet to approve large-volume imports into mainland China, the people said. China's Ministry of Industry and Information Technology and the National Development and Reform Commission did not respond to requests for comment.
Neither did Nvidia or Chinese tech companies Alibaba, ByteDance, DeepSeek and Tencent. The H200 is not Nvidia's newest AI processor, but it has capabilities that Chinese alternatives have yet to match, making it useful for training AI models particularly when combined with Nvidia's software.
US export controls since 2022 have sought to restrict China's access to advanced Nvidia chips and the equipment needed to make them. With authorised supply constrained, Chinese buyers have turned to intermediaries and indirect routes, pushing up prices in the unofficial market.
An eight-card H200 server was offered for more than 6 million yuan ($900,000) in mainland China by the end of October, about three times its price a year earlier, one person familiar with the matter said. Servers using Nvidia's newer Blackwell chips, which fall under US export controls, were offered for more than 20 million yuan apiece, the person added.
The H200 chip is caught in tension over trade and technology more broadly between Washington and Beijing. The United States barred exports of the H200 to China before President Donald Trump's administration gave Nvidia permission last year to sell the chips to approved Chinese customers.
The policy shift followed US-China trade negotiations. Beijing has imposed its own constraints on H200 imports, reflecting concerns about dependence on US technology.
As the situation develops, industry analysts suggest that the bottleneck in Hong Kong highlights the precarious nature of the global semiconductor supply chain, where geopolitical maneuvering often overrides market demand.