China may allow tech giants to purchase advanced Nvidia chips

China's Ministry of Industry and Information Technology has requested ByteDance and Alibaba to submit details of their intended purchases of Nvidia's RTX PRO 5500 chips, according to reports on Wednesday. The move suggests the government may be considering exemptions to its strict controls on advanced semiconductor imports for major domestic technology firms.

The development comes as China grapples with balancing domestic technological advancement against US-led restrictions on chip exports. American sanctions have severely limited China's access to cutting-edge processors crucial for artificial intelligence and data centre operations, prompting Beijing to explore ways to support key national champions.

ByteDance, the parent company of TikTok, and Alibaba are among China's largest tech companies and significant consumers of high-performance computing hardware. Their ability to access advanced chips would be critical for developing competitive AI systems and cloud computing services.

The reported inquiry does not constitute formal approval but indicates the government is evaluating how to allocate scarce semiconductor resources among domestic technology leaders. Any formal authorisation would require navigating complex international trade rules and potential pushback from the United States, which has made limiting China's AI capabilities a priority.

Neither ByteDance, Alibaba, nor China's Ministry of Industry and Information Technology have publicly commented on the reports.