In a significant development for the tech industry, major Chinese companies, including Alibaba and ByteDance, have been prohibited from purchasing Nvidia’s latest AI chips specifically designed for the Chinese market. This decision was reported by the Financial Times, which indicated that the Cyberspace Administration of China has imposed a ban on the acquisition and testing of the RTX Pro 6000D chips. This restriction comes despite companies having placed substantial orders for thousands of these chips since their launch in July.
Nvidia’s CEO, Jensen Huang, expressed disappointment over the ban during a recent press conference in London. He noted that he would be attending a state dinner alongside President Trump later that evening. Reflecting on the company’s efforts in the Chinese market, Huang stated, “We probably contributed more to the China market than most countries have. And I’m disappointed with what I see… But they have larger agendas to work out between China and the United States, and I’m understanding of that.”
This latest move occurs against a backdrop of escalating tensions between the U.S. and China over technology and trade. In August, Nvidia had engaged with the Trump administration to facilitate the sale of H20 chips to China, which included an agreement for the U.S. to earn a 15 percent cut of the profits. The current ban seems to add further complexity to these ongoing negotiations.
Critics of China’s policies have voiced their concerns, asserting that the country has shown a blatant disregard for U.S. trademark laws and the fundamental principles of fair trade agreements. One critic remarked, “It is not the fault of the United States that there are these strained relations. It is the fault of China.”
In response to these tensions, China has been actively working to strengthen its domestic chip manufacturing capabilities. This is seen as a strategic move after years of back-and-forth export controls between the two nations. While the U.S. has imposed limitations on the sale of advanced AI chips to China, China has responded by restricting the export of essential materials used in chip manufacturing to the U.S.
Currently, Chinese firms have been utilizing less powerful chips customized for their domestic market by Nvidia, indicating a shift in strategy as the country aims to become more self-reliant in technology. This evolving landscape highlights the growing complexities of international trade and technological competition, with both nations grappling to secure their positions in the global market.
