China Intensifies Crackdown on Nvidia AI Chips, Pushing for Domestic Alternatives

China launches customs crackdown on Nvidia AI chips

China has stepped up the enforcement of its controls on chip imports, as Beijing seeks to wean the country's technology companies away from US products such as Nvidia's artificial intelligence processors. Teams of customs officers have been mobilised at major ports across the country in the past few weeks to carry out stringent checks on semiconductor shipments, according to three people with knowledge of the matter. The inspections started with the goal of ensuring that local companies stop ordering Nvidia's China-specific chips following guidance from Chinese regulators to discourage their purchase, said the people. The targeted processors -- Nvidia's H20 and RTX Pro 6000D -- are designed to adhere to US export controls and maintain the Silicon Valley chipmaker's market share in China. But one person said the checks had been extended more recently to all advanced semiconductor products, to also better target the smuggling of high-end chips that breach US export curbs. Chinese customs had previously done little to prevent chip imports as long as appropriate duties were paid at the border. The Financial Times reported that at least $1bn worth of Nvidia's top AI chips were smuggled and sold in China in the three months from May. The border crackdown further marks Beijing's determination to ensure its tech companies break free from relying on American technology and help the country win the AI race against the US. China is seeking to put its resources behind domestic chipmakers, so they catch up in product performance and manufacturing capacity. In addition to tightened border controls, some customs officials also looked at whether companies had made false declarations in the past about the import of advanced semiconductor products, said two of the people familiar with the inspections. US quants trading giant Tower Research has been investigated for alleged smuggling of hardware including advanced chips, the FT reported last week. The probe was part of this new wave of import controls. China's regulators led by Cyberspace Administration of China (CAC), the internet watchdog, told tech companies led by ByteDance and Alibaba in mid-September to terminate their orders and testing for all Nvidia products. The new border controls have been carried out as a co-ordinated effort alongside the CAC. The regulator's guidance came just two months after Nvidia announced an earlier US export ban on H20 had been lifted by the Trump administration, while also introducing the RTX Pro 6000D, another watered-down AI chip for China. The latest moves have occurred as senior officials in Beijing have determined that domestic chips have reached performance standards that compare with Nvidia's China-specific chips. China also aims to triple its production of advanced semiconductors next year, in a move designed to fill the demand left by Nvidia, the FT reported last month. While Nvidia no longer includes China in its future revenue projection, it recorded $4.6bn in the first quarter of this fiscal year from selling H20 to China, its fourth-largest market, before the US temporarily restricted sales. China's customs did not respond to requests for comment. Nvidia declined to comment.

China steps up customs crackdown on Nvidia AI chips: Financial Times

China is increasing its enforcement of chip import restrictions, aiming to move its tech firms away from relying on US products. According to the Financial Times, this includes reducing dependence on Nvidia's AI chips, as Beijing pushes for more control over the country's access to foreign technology. China has ramped up enforcement of its chip import restrictions, aiming to reduce domestic technology companies' dependence on U.S. products such as Nvidia's artificial intelligence processors, the Financial Times reported on Friday. Reuters could not immediately verify the report. Teams of customs officers have been mobilized at major ports across the country in recent few weeks to carry out stringent checks on semiconductor shipments, the newspaper said, citing people with knowledge of the matter. The inspections were initiated with the aim of ensuring local companies halt their purchases of China-specific Nvidia chips following guidance from regulators, according to the FT report. China customs and Nvidia did not immediately respond to Reuters' request for comment. China's regulators, led by the Cyberspace Administration of China (CAC), instructed major tech firms including ByteDance and Alibaba in mid-September to halt orders and testing of Nvidia products, the report said, adding that customs checks have been widened to include all advanced semiconductor products.

China Escalates Crackdown on NVIDIA AI Chips, Intensifying Customs Inspections of RTX 6000D & H20 Models

It appears that Beijing isn't backing down from preventing the use of NVIDIA's AI chips on domestic grounds, as a new report indicates that enforcement controls have intensified. The situation for NVIDIA in China has evolved dramatically over the past few months, as the resistance to AI chip adoption is now coming from Beijing itself. For those unaware, it all started when China's domestic regulatory authorities opened an investigation into NVIDIA's H20 AI chip, and since then, domestic tech giants have been persuaded by the administration to switch towards in-house alternatives. According to a report by the Financial Times, China's customs officers are specifically scrutinizing semiconductor-based shipments to ensure that local companies aren't ordering NVIDIA's AI chips, particularly the RTX 6000D and H20 models. Interestingly, the report claims that Chinese customs previously had few measures implemented to block the flow of NVIDIA's GPUs into the region, which led to almost $1 billion worth of chips being smuggled and sold in the three months from May. Chinese tech giants such as Tencent, ByteDance, and Alibaba have already been instructed by authorities to cancel their orders of NVIDIA's offerings, and as a result, the nation is currently reliant on its existing inventory for AI computation. The recent measures indicate that Beijing has decided not to follow the 'NVIDIA route', which is one of the reasons why domestic firms like Huawei and Cambricon have accelerated their efforts to develop capable solutions for Chinese customers. But, based on the reports we have seen, relying entirely on a domestic tech stack is currently impossible for China's AI industry. NVIDIA holds an edge in several aspects, not just computational performance, since Team Green has a dedicated ecosystem that comprises hardware and the CUDA lock-in. Firms like Huawei are trying to find workarounds for this, but it is a multi-year effort, and domestic tech giants are still heavily reliant on chips from Team Green.

China Targets Nvidia's H20, RTX Pro 6000D Chips In Customs Crackdown As It Pushes To Cut Reliance On US Technology: Report - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

China has reportedly launched a sweeping customs crackdown on Nvidia Corporation's (NASDAQ:NVDA) AI chips. Beijing Launches Nationwide AI Chip Inspection Drive Teams of Chinese customs officers have been mobilized at major ports across the country to conduct stricter inspections of semiconductor imports, reported the Financial Times, citing three people with knowledge of the matter. The initial focus was Nvidia's China-specific AI processors -- the H20 and RTX Pro 6000D -- which were designed to comply with U.S. export controls. The checks, which began in the past few weeks, were aimed at ensuring Chinese companies stop ordering these Nvidia products following guidance from regulators discouraging their purchase. Officials have since widened the inspections to include all advanced chips to prevent smuggling of restricted U.S. hardware. One source told the publication that customs officials are now checking for false declarations and potential smuggling violations. An Nvidia spokesperson declined to provide a comment to Benzinga. See Also: Mitch McConnell Says Trump Tariffs-Ushered Era Has 'Similarities' With The 1930s China Moves To Replace Nvidia With Domestic Chips The crackdown comes after Beijing's Cyberspace Administration of China (CAC) instructed leading tech companies -- including ByteDance and Alibaba Group Holding Ltd. (NYSE:BABA) -- to terminate orders and testing of all Nvidia products in mid-September. Chinese authorities are reportedly convinced that domestic semiconductor firms have reached performance levels comparable to Nvidia's downgraded China-only chips. Beijing now plans to triple production of advanced semiconductors next year to fill the demand gap left by Nvidia's exit. Previously, it was reported that at least $1 billion worth of Nvidia's top-tier AI chips were smuggled into China over three months from May, prompting the intensified enforcement effort. Nvidia Downplays Impact, Says China Revenue Is Already Zero Earlier this week, Nvidia CEO Jensen Huang told CNBC's Jim Cramer that the company's financial guidance already assumes "China zero" revenue due to ongoing export restrictions. Huang also warned that a complete ban on U.S. chip exports could ultimately harm American firms more than their Chinese counterparts. In August, Nvidia said it expects third-quarter revenue to fall between $52.92 billion and $55.08 billion, compared to the Street consensus of $52.96 billion. The outlook excludes any contribution from H20 shipments to China. Price Action: Despite mounting regulatory headwinds, Nvidia remains the world's most valuable chipmaker, with a market capitalization of about $4.68 trillion. Shares have climbed more than 42% over the past year and are up 39% so far in 2025, according to Benzinga Pro. Benzinga's Edge Stock Rankings show Nvidia scoring in the 97th percentile for Growth and 93rd for Quality, underscoring its dominance in the global AI chip race even as geopolitical risks intensify. Read next: Apple May See Fewer Searches In Safari, But Google CEO Sundar Pichai Insists AI Is Fueling Overall Query Growth: 'Far From A Zero-Sum Game' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: JRdes / Shutterstock BABAAlibaba Group Holding Ltd$174.200.30%OverviewNVDANVIDIA Corp$192.900.17%Market News and Data brought to you by Benzinga APIs

Nvidia AI chips targeted in China customs crackdown- FT By Investing.com

Investing.com-- NVIDIA Corporation's (NASDAQ:NVDA) artificial intelligence chips were subject to increased scrutiny from China's customs authorities in recent weeks, the Financial Times reported on Friday, as Beijing seeks to further wean local developers off U.S.-made processors. Teams of customs officers were mobilized at major ports across the country in recent weeks to carry out stringent checks on semiconductor shipments, the FT reported, citing three people with knowledge of the matter. The inspections are aimed at ensuring local companies do not order Nvidia's China-specific chips- mainly the H20 and the RTX Pro 6000D- following heightened opposition towards the products by Chinese regulators. But the FT report said the checks were extended to cover all advanced chip imports, to also better target the smuggling in of goods that breach U.S. export controls. Nvidia's China-specific chips are made in line with U.S. restrictions on AI chip sales to China. But Beijing balked at these restrictions and had begun encouraging developers to use Chinese chips instead, calling the issue a matter of national security. While Nvidia was authorized to resume selling chips to China earlier this year, the company has found limited demand, at least on official fronts. Beijing was also seen ramping up investment in local chipmakers, with developers such as Huawei, Cambricon Technologies, and Semiconductor Manufacturing International Corp (HK:0981) seen at the forefront of this push. Reports earlier this year suggested that Beijing's new aversion to U.S. chips was motivated by seemingly insulting remarks from U.S. commerce secretary Howard Lutnick on chip sales to China. But this has left Nvidia walking a tightrope between U.S. export restrictions and Chinese regulatory aversion. China still represents a major market for the chipmaker.

China steps up customs crackdown on Nvidia AI chips, FT reports

(Reuters) -China has ramped up enforcement of its chip import restrictions, aiming to reduce domestic technology companies' dependence on U.S. products such as Nvidia's artificial intelligence processors, the Financial Times reported on Friday. Reuters could not immediately verify the report. Teams of customs officers have been mobilized at major ports across the country in recent few weeks to carry out stringent checks on semiconductor shipments, the newspaper said, citing people with knowledge of the matter. The inspections were initiated with the aim of ensuring local companies halt their purchases of China-specific Nvidia chips following guidance from regulators, according to the FT report. China customs and Nvidia did not immediately respond to Reuters' request for comment. China's regulators, led by the Cyberspace Administration of China (CAC), instructed major tech firms including ByteDance and Alibaba in mid-September to halt orders and testing of Nvidia products, the report said, adding that customs checks have been widened to include all advanced semiconductor products. (Reporting by Ananya Palyekar in Bengaluru; Editing by Mrigank Dhaniwala and Sherry Jacob-Phillips)