Beijing has summoned #NVIDIA to court due to 'serious security issues.'
The H20 chip was approved for export to the US specifically for the Chinese market.
Experts doubt the evidential basis of the accusations.
Chinese regulators have stated that Nvidia's H20 AI chips, the export of which was recently approved by the US, contain 'backdoors.' They allegedly allow tracking of location and remote disabling of devices.
The Cyberspace Administration of China (CAC) has summoned the company to court. The agency demanded clarifications and documentation regarding the identified security violations. Analysts believe this has jeopardized Nvidia's plans to restore its business in the country.
H20 was developed in bypass of American export restrictions and was supposed to be a key product for Nvidia in the Chinese market. After the export ban was lifted, the company's CEO Jensen Huang personally visited Beijing. He assured clients of the company's reliability and presented the new Blackwell series GPU, compliant with Washington's regulations.
However, the CAC's statements have not yet been backed by concrete facts. Technology expert Paul Triolo noted that he is skeptical of the allegations, as the regulator has not disclosed either the sources of its analysis or the results of Chinese tests. Nvidia has not yet provided an official comment.
Against this backdrop, Beijing is intensifying its push for the substitution of high-tech products. Major corporations have been advised to increase their purchases of domestic chips. This benefits Huawei and local manufacturers Biren and Cambricon, who are receiving government support to develop a national AI ecosystem.
At the same time, pressure is increasing on chip manufacturers in the US. Congress is discussing a bill that could require Nvidia and its competitors to embed a tracking system in exported processors. Opponents argue that such measures will accelerate the development of Chinese AI and pose a threat to American security.
Experts note that the situation remains uncertain. Production of H20 has resumed, but it will take nine months before shipments reach customers. There are influential forces on both sides of the Pacific opposing the deal. In the US, for security reasons, and in China, to accelerate the transition to an independent chip industry.
