China directs ByteDance and Tencent to store imported NVIDIA chips in Hong Kong
The Financial Times reports that Chinese regulators have permitted ByteDance and Tencent to import 10,000 NVIDIA H200 chips each, with instructions to store the hardware in Hong Kong to support local chip development.
China has reportedly permitted ByteDance and Tencent to import 10,000 NVIDIA H200 chips each, according to a report by the Financial Times. The processors were delivered over the past few weeks to support the training of frontier artificial intelligence models. Authorities have directed the firms to store the chips in Hong Kong rather than in mainland data centres, a move intended to bolster the domestic chip industry.
The decision to route the hardware to Hong Kong comes despite the region lacking local data centres. Chinese regulators are seeking to keep the majority of the chips out of the mainland to support the growth of local semiconductor manufacturers. This strategy aligns with broader efforts to reduce reliance on foreign products and respond to US export controls, as domestic companies develop their own AI chips.
ByteDance and Tencent are currently developing and training their own AI models and agents. The import of these processors is designed to help local companies compete with American counterparts. While the two tech giants have received their initial shipments, the Financial Times notes that other Chinese companies could soon receive similar shipments of the same size.
The approval follows a complex regulatory timeline. The US government previously banned H200 sales to China due to concerns over military technology development. In December 2025, the US allowed NVIDIA to sell processors to approved Chinese customers, by which time the H200 was two years old. Reuters reported in January that China had agreed to import several hundred thousand H200 chips, and in May, the US granted permission to 10 Chinese firms, including ByteDance and Tencent, to purchase the processors.
Under current regulations, ByteDance and Tencent are allowed to buy up to 100,000 chips each. The recent deliveries mark the start of these shipments to approved firms. The specific numbers and timing for other Chinese companies receiving similar shipments remain unclear, but the initial allocation signals a continued, albeit restricted, access to advanced computing hardware for China’s leading technology firms.
