Nvidia has reportedly implemented a new policy requiring its customers in China to pay the full amount upfront for its H200 AI chips, according to sources cited by Reuters. The company is not allowing refunds or order modifications under these stricter terms.

While some buyers may be permitted to use commercial insurance or asset collateral, these conditions are significantly tighter than Nvidia’s previous arrangements, which sometimes accepted partial deposits. Nvidia has declined to comment on the matter.

China is expected to grant approval for Nvidia to sell its H200 chips domestically, as reported by Bloomberg, though Beijing aims to prevent the chips from being used by its military, state-owned enterprises, and sensitive infrastructure projects.

Despite these regulatory hurdles, demand for the H200 remains robust. Chinese companies have reportedly placed orders for more than 2 million of these GPUs for delivery in 2026, leading Nvidia to increase production.

The chipmaker is navigating a delicate balance between capitalizing on strong market demand and managing political risks in both the United States and China. Nvidia previously faced significant challenges when the Trump administration announced that a license would be required to export its H20 chips to China, resulting in a $5.5 billion inventory write-down for the company.