China drafting purchase rules for Nvidia H200 chips, Nikkei Asia reports

Jan 15 (Reuters) - China is working to set rules on how many advanced artificial ​intelligence chip companies can buy from foreign ‌makers such as Nvidia, Nikkei Asia reported on Thursday, citing ‌two people familiar with the matter.

The Chinese central government is working on rules that will likely regulate the total volume of cutting-edge AI chips ⁠local companies can ‌purchase, effectively allowing some sales by Nvidia instead of banning them outright, the ‍report added.

Reuters could not immediately verify the report. Nvidia declined to comment.

This follows the Trump administration's decision on ​Tuesday to give a formal green light to ‌the sale of U.S.-based Nvidia's H200 chips to China.

U.S. lawmakers and former officials questioned Trump's decision on Wednesday, arguing that the move erodes America's AI edge and threatens to electrify Beijing's ⁠military.

Reuters reported exclusively on Wednesday ​that Chinese customs authorities have ​told customs agents this week that Nvidia's H200 AI chips are not permitted to ‍enter China.

The ⁠Chinese government summoned domestic technology companies to meet where they were explicitly instructed not to ⁠purchase the chips unless necessary, sources told Reuters.

(Reporting by ‌Disha Mishra in Bengaluru; Editing by Subhranshu ‌Sahu and Rashmi Aich)