ZTE Unit Among Chinese Firms Licensed to Purchase Nvidia H200 Chips, Documents Show

A unit of Chinese telecommunications firm ZTE Corp. and two other companies are among the latest to receive U.S. licenses to purchase advanced artificial intelligence chips from Nvidia and AMD, according to documents and sources familiar with the situation. The approvals come amid stringent U.S. export controls aimed at limiting Beijing's access to high-end computing technology.

New Approvals Detailed

The U.S. government has reportedly granted permissions that expand the list of Chinese firms cleared to acquire powerful semiconductors. The newly identified entities include:

• ZTE Kangxun Telecom, a unit of ZTE, and server maker Maginfra have been permitted to purchase Nvidia’s H200 chip.
• Zhuhai Hengqin Yunxiang Zhisheng Network Technology, a subsidiary of cloud computing firm Kingsoft, has been cleared to use certain AMD chips that are rivals to the H200.

These approvals, which have not been previously reported, add to a list of about 10 firms, including Alibaba and Tencent, that Reuters reported in May had received similar licenses. The H200 is one of Nvidia's most powerful processors, designed for training and operating large-scale AI models.

Navigating Export Controls

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Washington has progressively tightened restrictions on the sale of advanced AI chips to China since 2022, citing concerns that the technology could be used to advance the country's military capabilities. However, the U.S. has allowed some sales of the H200, which began shipping globally in 2024, to proceed under a licensing system.

Proponents of these licensed sales argue they help maintain U.S. technological leadership, while chipmakers like Nvidia have advocated for continued access to the significant Chinese market. The approvals highlight the complex balance U.S. policymakers are trying to strike between national security and commercial interests.

Market Impact and Hurdles

While U.S. approvals are a critical step, they do not guarantee immediate sales. Deals for other licensees have reportedly been stalled by scrutiny from both U.S. and Chinese authorities. However, sources indicated some Chinese cloud companies have recently suggested to clients that H200 chip deliveries may be forthcoming, signaling potential progress in China's import review process.

Uncertainty remains a key factor for investors, as Beijing continues to promote the development of domestic alternatives to U.S. chips. ZTE, Maginfra, Kingsoft, Nvidia, AMD, and China’s Ministry of Commerce did not respond to requests for comment, according to Reuters. The U.S. Bureau of Industry and Security also did not immediately comment.