Key facts
- ZTE Kangxun Telecom and Maginfra are cleared to purchase Nvidia's H200 AI chips.
- Zhuhai Hengqin Yunxiang Zhisheng Network Technology, a Kingsoft subsidiary, can purchase AMD chips.
- These approvals allow access to advanced AI chips used for training large language models.
- The U.S. has been restricting China's access to advanced computing power.
- Previous reports indicated around 10 Chinese firms were cleared to buy Nvidia chips, but deliveries were pending.
ZTE Kangxun Telecom, Maginfra, and Kingsoft subsidiary Yunxiang Zhisheng have received U.S. approval to purchase advanced AI chips from Nvidia and AMD. These approvals are significant as the U.S. aims to limit China's access to high-performance computing power crucial for training large language models. Nvidia's H200 chip is central to this technological rivalry.
ZTE Kangxun Telecom and Maginfra are permitted to acquire Nvidia's H200 chips, while Zhuhai Hengqin Yunxiang Zhisheng Network Technology has clearance for certain AMD chips that compete with the H200. These approvals broaden the scope of companies receiving licenses beyond major internet firms and electronics distributors previously reported.
Reuters had previously reported in May that about 10 Chinese firms, including Alibaba, Tencent, ByteDance, and JD.com, had been cleared to buy Nvidia chips, but deliveries were pending. Recent indications suggest H200 chips may soon be available to some Chinese cloud firms, pointing to progress in import reviews by Chinese authorities.
The U.S. has progressively tightened export restrictions on advanced AI chips to China since 2022, citing concerns about military modernization. Despite these controls, the Trump administration has allowed sales of the H200, which began global shipments in 2024. Proponents argue these sales reinforce U.S. technological dominance, while China is developing domestic alternatives.