Nvidia parts suppliers H200 manufacture has halted after Chinese customs officials barred shipments of newly certified AI processors.

The report said Nvidia expected more than 1 million Chinese orders and that its suppliers had been working 24/7 to prepare for delivering as early as March.

According to sources, government authorities summoned domestic tech firms to advise them against buying the chips.

The H200, Nvidia’s second-most powerful AI processor, is a major U.S.-Sino issue. Though Chinese firms have high demand, it is unclear whether Beijing intends to ban it altogether so domestic chip makers can thrive, is still considering limits, or could use them as a bargaining chip in talks with Washington.