By Joe Toscano
Publication Date: 2026-01-26 20:50:00
An AI generated image of chips from leading manufacturers in the United States and China
image generated by Pressmaster.ai
When Beijing asked Chinese tech firms to halt orders of NVIDIA’s H200 chips earlier this month, it appeared to signal China’s commitment to semiconductor independence. In a reversal of that decision, Chinese officials have now granted in-principle approval for Alibaba, Tencent, and ByteDance to prepare orders for the advanced AI chips.
The rapid reversal reveals a strategic tension at the heart of China’s semiconductor ambitions: while Beijing pursues long-term independence from American chip technology, near-term competitive pressures require access to the world’s most advanced products to remain competitive.
The Pragmatic Reversal
Regulators have recently granted approval for China’s largest tech firms to move to the next stage of preparations for H200 purchases, according to reports. The companies can now discuss specifics such as order quantities, though Beijing will encourage them to buy a certain amount of domestic chips as a condition for approval. No exact number has been set.
Chinese tech firms had previously indicated interest in ordering more than 2 million H200 chips for 2026 delivery, with Alibaba and ByteDance each seeking over 200,000 units. Companies were prepared to pay a 25% tariff imposed by President Trump to access the chips before the initial halt.
The decision to allow imports demonstrates what industry analysts describe as a…
