Washington’s chip dilemma: Why China is no longer rushing to buy Nvidia’s H200

From the report

The reported accumulation of approximately 600,000 Nvidia H200 artificial intelligence chips in Hong Kong, awaiting shipment to mainland China, has exposed an uncomfortable reality for Washington: China is no longer prepared to accept American semiconductor technology simply because the United States decides to make it available.

According to a November 5 Reuters report, Beijing has withheld approval for large-scale imports of the H200 processors despite demand from Chinese technology companies. Some shipments have reportedly entered China in limited quantities, with several major internet companies receiving approximately 10,000 chips each. Neither the Chinese authorities nor Nvidia has publicly confirmed the reported stockpile. Nevertheless, the development has triggered questions among American analysts and media commentators about why Beijing is exercising such caution toward a product that Chinese companies could find useful.

The apparent confusion in Washington reflects a contradiction at the heart of American technology policy. For years, US politicians have argued that China must be prevented from obtaining advanced American semiconductors, presenting restrictions as necessary to protect national security and maintain America’s technological advantage. Yet when Beijing hesitates to purchase those same products, some American observers suddenly portray China’s decision as irrational or economically self-defeating. The question is straightforward: if Washington believes China should not have access to these chips, why is it so concerned when Chinese authorities decline to buy them?