# China may allow ByteDance, Alibaba to buy Nvidia's new AI chips Government likely to approve purchases of restricted US tech despite domestic push. - **Source:** [Technology News Today, Latest Tech News | The Hindu](https://www.thehindu.com/sci-tech/technology/) - **Published:** 2026-09-28 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/be7aab3a-f6ac-481c-9422-107c98f75899 ## Potential approval for restricted chips China's Ministry of Industry and Information Technology may grant ByteDance and Alibaba permission to purchase Nvidia's new RTX PRO 5500 chips, according to unnamed sources. The government asked companies to report their purchase plans before likely approving them. This comes despite China's push for domestic alternatives to reduce reliance on US technology that could face sudden export restrictions. ## Nvidia's position in the conflict Nvidia CEO Jensen Huang has advocated for allowing chip sales to China, emphasizing the need to compete in the Asian market. However, US export controls currently restrict such transactions. An Nvidia spokesperson criticized these controls as outdated. The company finds itself caught between US government restrictions and Chinese market demands, with billions in potential revenue at stake. ## China's dual strategy While potentially approving these purchases, the Chinese government simultaneously encourages tech giants to explore homegrown alternatives. This reflects China's broader strategy of maintaining access to cutting-edge technology while developing domestic capabilities. The approach aims to prevent over-reliance on US technology that could be cut off due to geopolitical tensions. ## US technologists' opposition Anthropic CEO Dario Amodei and other technologists have called for maintaining chip restrictions against China. In a July open letter, Amodei argued that without access to US chips, China cannot build AI models more powerful than those in the US due to scaling laws and limited domestic production capacity. This highlights the strategic importance of chip exports in the AI race. ## Geopolitical implications The potential approval reveals tensions in China's tech policy between self-sufficiency and accessing cutting-edge foreign technology. It also demonstrates how Chinese companies navigate US export controls while maintaining technological competitiveness. The situation underscores the complex interdependence in global tech supply chains despite political tensions. ## Industry response Neither ByteDance, Alibaba, nor the Chinese government have formally confirmed the reported approval process. The lack of official confirmation reflects the sensitivity surrounding US-China technology transfers. Companies likely await clear signals from both governments before committing to major purchases that could be affected by policy changes. ## Market consequences Approval would provide Nvidia with significant revenue from Chinese tech giants while potentially undermining US efforts to limit China's AI development. It could also create tensions between Nvidia and US policymakers. The decision may influence how other Chinese companies approach similar technology acquisition challenges. ## Future outlook This development signals China's pragmatic approach to technology acquisition despite political rhetoric about self-reliance. It suggests Chinese companies may continue finding ways to access restricted foreign technology while developing domestic alternatives. The situation will likely evolve as both countries adjust their export control and industrial policies. ## Sources covering this story - https://www.thehindu.com/sci-tech/technology/bytedance-alibaba-to-be-allowed-by-chinas-govt-to-buy-new-nvidia-chips/article71518472.ece — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._