China plans to allow top artificial intelligence companies to buy a limited amount of H200 chips from Nvidia, a sign the country is easing restrictions on the coveted US technology, according to the Information.

Chinese officials have informed companies such as Alibaba Group, ByteDance and DeepSeek that they will have permission to purchase some of the processors, which are used to develop AI models, the news site said July 8.

The companies need to say how many chips they need – and why – to get approval, according to the Information.

The chips have emerged as a geopolitical flashpoint for the world’s two largest economies.

Though US President Donald Trump granted Nvidia permission to sell the processors to China in December, Chinese authorities have been slow to allow the technology into the country.

Nvidia shares climbed 3.7 per cent to US$204.12 on July 8, part of a broader chip rally. It marked the stock’s biggest one-day increase in more than a month.

Though Nvidia is now up 9.4 per cent in 2026, that pales in comparison with the gains of most major semiconductor peers.

In a statement, Chinese embassy spokesperson Liu Chang said that the country’s position on US chip exports has been consistent.

“We advocate that China and the United States achieve mutual benefit and win-win outcomes through cooperation, and we oppose the politicisation, instrumentalisation, and weaponisation of technological and economic issues,” he said.

“We stand ready to work with all parties to jointly safeguard the stability of global industrial and supply chains.”

A representative for Santa Clara, California-based Nvidia did not respond to a request for comment. 

The H200 import snags hinged in part on Chinese concerns that a flood of American-designed AI processors would hinder the government’s long-held goal of developing an indigenous c...