China has finally approved the import of NVIDIA’s H200 AI chips, a move that follows initial resistance from the Chinese government. This decision comes after CEO Jensen Huang’s recent visit to China, where several hundred thousand H200 chips were greenlit for sale. The approval is a significant shift, as China had previously favored domestic semiconductor solutions.

The U.S. government had already permitted the sale of H200 processors to vetted Chinese companies last year. The initial batch is earmarked for three unnamed Chinese internet firms, with more applications pending. This development reflects a strategic pivot in China’s stance on foreign AI technology, potentially giving a boost to local tech giants.

Despite the H200 approval, NVIDIA’s Blackwell B200, its most powerful AI chip, remains restricted. Over $1 billion worth of NVIDIA’s high-end chips have reportedly reached China through black market channels. The H200, while not as powerful as the B200, is still a significant upgrade over the previously approved H20 model, which China had initially favored over foreign alternatives.

China’s move towards self-reliance in AI technology remains a priority, with Huawei leading the charge domestically. However, experts agree that NVIDIA’s technology still outpaces domestic offerings, making this import approval a strategic compromise for China’s tech sector.