Nvidia is tightening the screws on H200 sales in China, reportedly requiring customers to pay the full amount upfront—no deposits, no staggered payments—as approval on both sides of the Pacific remains in flux.
According to Reuters, the new terms also bar cancellations, refunds, and even post-order configuration changes, a sharp shift from earlier policies that sometimes allowed partial deposits and more flexibility.
Nvidia declined to comment on the reported policy change.
Upfront payment, fewer escape hatches
Reuters says Nvidia is applying unusually strict conditions to H200 orders tied to China. In most cases, buyers must pay in full at the time of purchase. Only in rare situations can customers substitute cash with commercial insurance or asset collateral.
The message is clear: once an order is placed, the buyer is effectively locked in—an approach that limits Nvidia’s exposure if licenses or approvals stall, shift, or get pulled.
Regulatory limbo in the U.S. and China
On the U.S. side, Nvidia’s ability to ship advanced AI chips to China hinges on export licensing, and Reuters has reported that approvals have no firm public timeline.
In China, the picture is also complicated. Bloomberg reports Beijing is preparing to approve some H200 imports as soon as this quarter, but with restrictions aimed at keeping the chips away from sensitive uses.
Reuters similarly reported that Chinese authorities were weighing allowing H200 imports for commercial use while excluding sensitive sectors—adding yet another layer of uncertainty for both Nvidia and its customers.
Demand is still surging
Even with policy risk hanging over the deal flow, demand for Nvidia’s H200 in China hasn’t disappeared. Reuters reported on January 8, 2026 that Chinese firms have ordered more than 1.2 million H200 chips.
Earlier Reuters reporting (December 31, 2025) put projected 2026 orders even higher—over 2 million units—underscoring how fast interest has been building.
The issue is supply: Reuters has reported Nvidia’s available inventory was far below the volume Chinese buyers were seeking, which helps explain why the company can demand tougher payment terms.
Why Nvidia is playing it safe
Nvidia’s harder line on payments comes after a costly lesson from prior restrictions. In 2025, Nvidia disclosed it expected a $5.5 billion charge tied to H20 inventory, purchase commitments, and related reserves after the U.S. government moved to restrict exports of that chip to China.
Now, with H200 shipments again sitting at the intersection of politics and demand, Nvidia appears to be trying to capture as much legitimate commercial demand as possible—while limiting the financial downside if approvals change.