Tensions between Washington and Beijing have once again spilled over into the tech sector. Chinese state media have launched sharp criticism at Nvidia’s H20 chips, designed specifically for the Chinese market, labeling them technologically unimpressive, unsafe, and harmful to the environment.

Nvidia has repeatedly stressed that its products contain no “backdoors” or other mechanisms that could enable remote access or control. Nevertheless, the U.S. chipmaker remains under heavy fire from Chinese media and regulators.

Criticism from Beijing: From CCTV to People's Daily

On Sunday, the Yuyuan Tantian account on WeChat, linked to state broadcaster CCTV, published a scathing post claiming the H20 chips pose security risks — including alleged hardware features that could allow “remote shutdown” of devices.

“If a chip is not advanced, not secure, and even damages the environment, as consumers we have every right not to buy it,” the post stated.

Similar concerns had already been voiced by China’s Cyberspace Administration and the influential People’s Daily, which urged Nvidia to provide “compelling security evidence” to restore market confidence.

U.S. Restrictions and the H20 Chip for China

The H20 chips were developed in response to U.S. export restrictions introduced in late 2023, which banned the sale of the most advanced AI chips to China. In April 2025, the Trump administration reimposed a ban on their export — amid escalating trade tensions — before lifting it again in July.

Just days later, China’s cyber regulator announced it had summoned Nvidia to discuss potential security risks related to “backdoors.”

Trade Negotiations and Key HBM Chips

According to Financial Times sources, Beijing is now pushing for the easing of U.S. restrictions on high-bandwidth memory (HBM) chips, which are critical for data-intensive AI applications. Such concessions could form part of a potential trade deal ahead of a possible summit between Donald Trump and Xi Jlnping.

China fears the restrictions are hindering domestic tech giants, including Huawei, in developing their own AI chips.

The Strategic Semiconductor Game

Successive U.S. administrations — regardless of political affiliation — have maintained strict oversight of advanced chip exports to China. The main goal is to slow Beijing’s progress in AI and military technology while limiting its access to cutting-edge semiconductor manufacturing capabilities.

Although these measures make it harder for U.S. companies like Nvidia to fully tap into China’s massive market, they also protect America’s strategic interests. Despite political and trade friction, China remains one of the largest buyers of U.S. semiconductors and a major revenue source for the American chip industry.

#NVIDIA , #china , #AI , #worldnews , #TRUMP

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“