Jan 15 (Reuters) – China is formulating rules for how many advanced artificial intelligence chip companies it can buy from foreign manufacturers such as Nvidia (NVDA), Nikkei Asia reported on Thursday, citing two people familiar with the matter.
The report adds that China’s central government is developing rules that may regulate the total amount of cutting-edge artificial intelligence chips that local companies can buy, effectively allowing Nvidia to make some sales rather than ban them entirely.
Reuters could not immediately verify the report. Nvidia declined to comment.
This follows the Trump administration’s decision on Tuesday to formally approve the sale of U.S. Nvidia H200 chips to China.
U.S. lawmakers and former officials on Wednesday questioned Trump’s decision, arguing that the move undermines America’s edge in artificial intelligence and threatens the electrification of Beijing’s military.
Reuters exclusively reported on Wednesday that Chinese customs authorities had told customs officers this week that Nvidia’s H200 AI chips were not allowed to enter the country.
Sources told Reuters that the Chinese government convened a meeting of domestic technology companies and explicitly instructed them not to buy chips unless necessary.
(Reporting by Disha Mishra in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)