China Orders Local Firms to Halt New Nvidia H200 Chip Orders Amid Tensions
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 07 2026- Order Suspension: China has instructed some local tech companies to halt new orders for Nvidia's H200 chips, aiming to promote the use of domestic AI chips, which could impact the technological upgrades and market competitiveness of affected firms.
- Policy Context: This move is linked to the unresolved status of U.S. export licenses for Nvidia, reflecting the escalating tensions between the U.S. and China in the semiconductor sector, potentially leading to uncertainties for Chinese firms in acquiring high-performance chips.
- Market Impact: Although Nvidia's CEO indicated strong demand for the H200 in China, the freeze on orders may hinder Nvidia's sales growth in the Chinese market, particularly in competition with local rivals.
- Strategic Consideration: China aims to enhance its self-sufficiency in the semiconductor field by restricting foreign chip purchases, thereby improving its competitive position in the global supply chain, especially amid the current tensions in U.S.-China relations.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
