China Is Cracking Down On Nvidia Graphics Cards (For Good Reasons) – BGR

The AI race just took a major turn to begin 2026 when China banned imports of Nvidia’s H200 chip. The decision, first reported by The Information and later clarified by Reuters, is somewhat vague, causing some observers to predict that it is intended to preserve Beijing’s flexibility in ongoing Sino-American trade negotiations. The impetus behind China’s newly imposed limits is equally opaque, with experts positing a variety of motivations, ranging from a desire to boost domestic chip production to potential security concerns and bargaining tactics. No matter the logic, however, the decision will have wide-ranging effects on Beijing’s AI development efforts.

The move comes after the Trump administration approved Nvidia’s overtures to sell Chinese firms their H200 chips. The measure included several caveats, including a 25% cut for the U.S. government, roughly 10% higher than those imposed on the less powerful H20 in August. As the most advanced chip cleared for…