China has approved the first batch of Nvidia's H200 artificial intelligence (AI) chips after Washington allowed limited sales, paving the way for major Chinese technology companies to gain access to processors that remain far ahead of domestic alternatives.

South China Morning Post reports that about 400,000 units are included in the initial shipment, with Alibaba, Tencent and Bytedance set to receive the first deliveries.

Other firms are still waiting for their applications to move through the system.

The expectation is that state supported operators such as telecommunications companies will continue to face stricter oversight, keeping their access to imported chips heavily managed.

Beijing is trying to direct these high performance processors to the companies that need them most for training and running AI and cloud systems, but it is doing so inside a tightly controlled approval framework.

The aim is to make sure that supply reaches core users without weakening domestic chip development. This balancing act sits at the centre of its broader push for self sufficiency in the semiconductor field.

The move follows a decision by U.S. President Donald Trump late last year to permit sales of the H200 on the condition that shipments to China do not exceed 50% of Nvidia's sales inside the United States.

Nvidia had warned that losing the Chinese market would threaten its global leadership in chip production, prompting the White House to adjust its stance.

The H200, capable of 15,832 calculations per second according to Chinese reporting, remains well ahead of the most advanced chips currently produced in China.

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This performance gap explains why Chinese companies have pressed for access under the controlled approval system now in place.

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