Shanghai, January 24, 2026, 21:21 GMT+8
- According to sources familiar with the situation, Jensen Huang is currently in Shanghai for Nvidia’s annual employee celebrations in China.
- Nvidia is currently awaiting Beijing’s approval before it can sell its H200 AI chip to customers in China
- Sources say Chinese customs agents have been instructed that the H200 cannot be brought into China
Nvidia CEO Jensen Huang arrived in Shanghai on Saturday while the U.S. chipmaker awaits China’s decision on whether its advanced H200 AI chip can be imported, according to a source familiar with the situation. (Reuters)
Why it matters now: this ruling could determine Nvidia’s foothold in a crucial market amid strained U.S.-China tech relations and heightened scrutiny from Chinese regulators on top foreign vendors. The H200, Nvidia’s second-strongest AI chip, powers data-center operations for training and running sophisticated AI models. It’s evolved into both a commercial and political battleground.
Demand is picking up noticeably. KeyBanc analyst John Vinh suggested Chinese firms “may be willing to purchase around 1.5 million H200 chips,” which he estimates could generate roughly $30 billion in revenue for Nvidia. (TradingView)
Huang’s visit isn’t out of the ordinary. Sources familiar with the itinerary say he’ll hit an Nvidia party in Shanghai first, then head to Beijing, Shenzhen, and finally Taiwan.
Nvidia hasn’t commented on the trip, according to the earlier report. The Chinese outlet Tencent News was first to report Huang’s visit to Shanghai.
The bigger hurdle is the chip itself. Nvidia is holding back on selling the H200 to customers in China, awaiting Beijing’s green light—even though Washington has already approved the sale, Reuters reported.
LiveMint reported that Chinese customs officials informed a Shenzhen logistics firm last week that Nvidia’s H200 chips couldn’t enter the country. No explanation was given, nor was it clear if this ban was temporary. The report also noted warnings to some domestic tech companies to avoid buying Nvidia chips and focus on local alternatives. This has led players like Tencent, Alibaba, and ByteDance to consider restricting their Nvidia purchases to only high-performance projects. (mint)
Investors have been parsing every hint. Nvidia shares climbed 1.5% on Friday following a Bloomberg report that Chinese regulators told Alibaba, Tencent, and ByteDance they might start placing orders for the H200 AI chips, according to a separate Reuters markets story. (Reuters)
China’s homegrown AI chip makers are stepping up their game. Bloomberg notes that with Nvidia out of the picture, companies like Huawei Technologies and Cambricon Technologies are making noticeable strides. (Bloomberg)
The risk is straightforward: China might maintain the border block, impose stricter rules on who can buy the chips and for what purposes, or stall approvals to gain leverage in wider negotiations with Washington. For Nvidia, these delays increase the odds that clients turn to local alternatives, even if they favor Nvidia’s ecosystem.
Huang’s trips highlight just how high the stakes are. Reuters revealed he made at least three visits to China last year and met with the country’s commerce minister in July, as Nvidia juggled regulatory hurdles alongside growing competition.
The pressing issue is whether Beijing will formalize the customs message into policy or quietly backtrack, and if Huang’s upcoming visits to Beijing and Shenzhen provide any clearer indication.
