China Orders Halt to Purchases of Nvidia Chips, Escalating Tech Tensions
BEIJING – Chinese authorities have reportedly instructed domestic companies to cease purchasing chips from Nvidia, signaling a significant escalation in teh ongoing technological competition between the two nations. The move, revealed Wednesday, comes amid accusations from Beijing that Nvidia is monopolizing the market and increasing pressure in trade negotiations with the United States.
The directive targets a range of Nvidia products, including the RTX 6000 series, specifically designed for the Chinese market and subject to existing restrictions. While not Nvidia’s most prominent product line, the ban underscores China’s ambition to develop a self-sufficient artificial intelligence ecosystem and reduce reliance on American technology that could be subject to sudden restrictions. This action follows Beijing’s recent declaration of an anti-dumping examination targeting semiconductors produced by U.S. firms like Texas Instruments.
“It is clear that China prefers developing artificial intelligence at its own pace and based on a local technical system. It is better to be able to shock now rather than rely on American technology that can be imposed suddenly restrictions,” stated a general manager at Union Bancaire Privee. He added that a full ban,if confirmed,would demonstrate China’s growing confidence in its domestic supply chain,but likely serves as a bargaining chip in ongoing commercial negotiations.
The decision by Chinese regulators reportedly stems from a growing belief that local chip alternatives have become increasingly advanced. Companies like Alibaba and baidu are actively developing their own semiconductors to lessen dependence on foreign suppliers. Alibaba, in particular, has gained traction in the domestic market, securing a major contract with China’s second-largest wireless telecommunications company to utilize its “T-HEAD” artificial intelligence chips.
This development coincides with scheduled talks between U.S. President Donald Trump and Chinese counterpart xi Jinping on Friday, following trade discussions held in Madrid. Earlier, Nvidia suppliers reportedly suspended production of “H20” chips following China’s initial move.
