Podcast Episode
The visit carries significant weight as both Washington and Beijing work to finalise terms for chip sales. Huang is expected to attend company gatherings in Beijing and meet with prospective buyers to address logistical hurdles that have stalled chip deliveries.
This marks a dramatic reversal from mid-January, when Chinese customs officials blocked H200 shipments and explicitly advised tech companies against acquiring the chips unless absolutely necessary.
Beijing is expected to require companies to purchase a certain volume of domestic chips from Huawei and Cambricon alongside their H200 orders. The chips will be barred from military applications, sensitive government agencies, critical infrastructure, and state-owned enterprises.
China previously accounted for over twenty percent of Nvidia's data centre revenue before export restrictions took effect. With a black market already commanding a fifty percent premium for H200-equipped servers, demand remains exceptionally strong despite the regulatory uncertainty.
Nvidia CEO Jensen Huang Heads to China as Beijing Greenlights H200 Chip Orders
January 26, 2026
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Nvidia CEO Jensen Huang is visiting China this week as Beijing signals approval for major tech giants including Alibaba, Tencent, and ByteDance to prepare orders for H200 AI chips. The visit comes as both governments navigate complex regulatory requirements, with China previously blocking shipments and the US requiring a twenty-five percent revenue share.
Jensen Huang's Strategic China Visit
Nvidia CEO Jensen Huang touched down in Shanghai this week, making his first major trip to China as the company works to reopen what could be a fifty billion dollar market for AI chips. Huang was spotted at a local wet market in Shanghai's Lujiazui district, handing out red envelopes to vendors ahead of the Lunar New Year celebrations.The visit carries significant weight as both Washington and Beijing work to finalise terms for chip sales. Huang is expected to attend company gatherings in Beijing and meet with prospective buyers to address logistical hurdles that have stalled chip deliveries.
Beijing Reverses Course on Restrictions
In a notable policy shift, Chinese regulators have granted preliminary approval for the country's biggest tech firms to advance their purchasing preparations. Alibaba, Tencent, and ByteDance have all received the greenlight to negotiate order quantities, with both Alibaba and ByteDance privately expressing interest in purchasing more than two hundred thousand H200 units each.This marks a dramatic reversal from mid-January, when Chinese customs officials blocked H200 shipments and explicitly advised tech companies against acquiring the chips unless absolutely necessary.
Complex Regulatory Balancing Act
The deal comes with strings attached on both sides. The Trump administration approved H200 exports with conditions including a twenty-five percent revenue share for the US government, mandatory domestic inventory levels, and independent laboratory evaluations.Beijing is expected to require companies to purchase a certain volume of domestic chips from Huawei and Cambricon alongside their H200 orders. The chips will be barred from military applications, sensitive government agencies, critical infrastructure, and state-owned enterprises.
High Stakes for Both Sides
Nvidia currently holds approximately seven hundred thousand H200 units in inventory, while Chinese firms have placed orders exceeding two million chips. The company has shifted to requiring full upfront payment from Chinese customers, moving away from its previous deposit-based approach.China previously accounted for over twenty percent of Nvidia's data centre revenue before export restrictions took effect. With a black market already commanding a fifty percent premium for H200-equipped servers, demand remains exceptionally strong despite the regulatory uncertainty.
Published January 26, 2026 at 7:32am
