China Approves First Batch of Nvidia H200 AI Chip Imports Amid Balancing Act

• China has approved the import of the first batch of Nvidia's H200 AI chips, marking a shift in its stance on balancing AI needs with domestic development.
• The approval covers several hundred thousand H200 chips and was granted during Nvidia CEO Jensen Huang's recent visit to China.
• Initial approvals are allocated to three major Chinese internet companies, with others now queuing for subsequent clearances.
• The H200, Nvidia's second most powerful AI chip, has been a flashpoint in US-China relations, with Beijing previously hesitant despite US export approval and strong demand.
• Beijing's decision suggests a prioritization of major Chinese internet companies' needs to build data centers and compete in AI, despite efforts to nurture its domestic semiconductor industry.

Why It Matters: China greenlights Nvidia H200 AI chip imports, balancing domestic AI development with global competition.