Nvidia CEO Jensen Huang says China hasn't approved H200 imports yet — also confirms no new orders placed while Beijing decides
"I’m hoping that the Chinese government would allow Nvidia to sell the H200"
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After days of back and forth and lots of unofficial information swirling, Nvidia CEO Jensen Huang has finally issued an "official" update on the H200 saga in China. Speaking to the press during a visit to Taiwan on Thursday, he confirmed that Beijing hasn't yet decided whether or not to allow imports of the chip into the country, Bloomberg reports. Understandably, the company has also not received any orders while China's stance on the matter remains unclear.
"I’m hoping that the Chinese government would allow Nvidia to sell the H200," Huang reportedly said. "It’s up to the Chinese government now but they are still deciding, and we are waiting patiently.”
Bloomberg says that Huang confirmed meetings with both customers and government officials had taken place during a recent trip to China, but that the CEO confirmed "no new orders for the H200 chips were placed." As the report notes, Chinese officials had reportedly told firms like Alibaba that they could prepare to order the chips, hinting at an imminent decision to allow at least some imports.
However, it has also been reported in previous days and weeks that Beijing has limited H200 purchases and told its customers officers to block H200 imports. The picture is anything but clear, and Huang's statement of clarification, while not a definitive resolution, is the first real official update we've had on the matter in some time.
Naturally, Huang was bullish on the merits of Nvidia's H200 offering, saying the chip is "very good" for the Chinese market and stating there is customer demand. Indeed, it was recently reported that some Chinese companies were considering acquiring H200 chips on the black market due to holdups.
H200 imports to China would be something of a boon to Nvidia. While the company isn't exactly strapped for cash, its market share in the country is predicted to fall drastically from 66% to just 8%. With China prioritizing homegrown silicon, and Nvidia precluded from shipping its most advanced chips to the nation, it seems unlikely that those fortunes will turn around. But H200 imports to China would give the company revenue, and more importantly, keep itself relevant with CUDA while China explores other options.
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-Fran- So... This is one way this can go down: China could force nVidia to sell the H200 for way cheaper, perhaps getting close to cost, so nVidia still gets a profit out of it and then the % the USA gets from each sell is meager at best. This would introduce an endless feedback loop, because we know how the current Admin will answer, so it'll either force nVidia or back to the "I'll tariff you MOAR!".Reply
I can see other possiblities, but I won't go there, since some didn't like the radical hot takes involving a Chinese Gulag, LOL.
Regards. -
thth Reply
The US cut doesn't change based on export price. It's not an export tariff as export tariffs are not legal in the US.-Fran- said:% the USA gets from each sell is meager at best.
It's applied as a 25% import tariff when the cards are first imported to US before they are sold to China. -
-Fran- Reply
You're behind the news cycle, dawg!thth said:The US cut doesn't change based on export price. It's not an export tariff as export tariffs are not legal in the US.
It's applied as a 25% import tariff when the cards are first imported to US before they are sold to China.
Https://www.bbc.co.uk/news/articles/cg4erx1n04lo
"President Donald Trump said last month that he would allow the chip sales to "approved customers" in China and collect a 25% fee."
EDIT: Ah, it clicked on my slow brain now. What you said makes sense now!
Regards. -
thth Reply-Fran- said:"President Donald Trump said last month that he would allow the chip sales to "approved customers" in China and collect a 25% fee."
President uses this kind of wording when he talks about it. But White House clarified this the very next day when he posted his first Truth Social post about it. Here's what's actually happened.
- In US currently there's no legal mechanism to collect a cut of the revenue or even an export tariff. Originally he wanted to get 15% of the sales to China. But since they cannot collect it legally they had to change it to an import tariff. Import tariffs are collected by Customs and applies to the import price(a much lower price than sale price), which is why they had to actually raise the percentage to 25%.
- The workaround they came up with is:
(1) Force all China bound cards to be first imported to US. This is otherwise an unnecessary step for Nvidia. Remember these cards are made in Taiwan and it's much cheaper for Nvidia to ship it directly from there.
(2) Apply a 25% tariff to H200s that are imported to US. Then exempt all the cards that are imported for US domestic use from the tariff. This way the tariff is only applied to the cards they import to resell to China. When they speak a 25% cut of H200 sales to China they are always talking about this import tariff. But many journalists present this in a misleading way which sometimes sound like it's a cut from the sales. -
thth Reply
It seems mine also slow. I typed a whole long reply without seeing your edit.-Fran- said:EDIT: Ah, it clicked on my slow brain now. What you said makes sense now! -
Captain Awesome There's such an extreme shortage, that other buyers would buy the H200's meant for China.Reply
What I find shocking though, is in the picture that goes with the story people appear to have brought random crap for Jensen to sign. That picture deserves a story of its own. 😁 Like why does he sign things? And where does this happen, so I can have him sign random things for me too. 😃 -
thth ReplyCaptain Awesome said:There's such an extreme shortage, that other buyers would buy the H200's meant for China.
What I find shocking though, is in the picture that goes with the story people appear to have brought random crap for Jensen to sign. That picture deserves a story of its own. 😁 Like why does he sign things? And where does this happen, so I can have him sign random things for me too. 😃
That picture is from this news conference itself where he said this. After he arrived there he first handed out gifts to reporters like sandwiches and stuff then signed things for them