After weeks of uncertainty, China has approved its first batch of Nvidia’s H200 artificial intelligence chips for import, signalling a shift as Beijing balances surging AI demand with efforts to support domestic chipmakers, according to people familiar with the matter.

The approval covers several hundred thousand H200 chips and was granted during Nvidia CEO Jensen Huang’s visit to China this week. The initial clearances were mainly given to three large Chinese internet companies. Meanwhile, other firms are now waiting for subsequent batches. The identities of the approved companies were not disclosed, and neither Chinese authorities nor Nvidia have commented.

The H200, Nvidia’s second-most-powerful AI chip, has been a major point of friction in US–China technology relations. Although the US recently cleared exports of the chip to China, Beijing had the final say. Beijing had earlier blocked imports through customs as well.

Chinese tech firms have reportedly placed orders for more than two million H200 chips, far exceeding Nvidia’s available supply. It remains unclear how many more companies will receive approvals or the criteria China will use going forward.

The move suggests Beijing is prioritising large internet companies investing heavily in data centres to build AI capabilities. While Chinese firms such as Huawei offer chips comparable to Nvidia’s H20, they still lag behind the H200. The H200 delivers around six times the performance.

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