Chinese State Media Raises Security Concerns Over Nvidia's H20 AI Chips

Reviewed byNidhi Govil

10 Sources

Chinese state-affiliated media criticizes Nvidia's H20 AI chips, claiming they pose security risks and are technologically inferior. Nvidia denies these allegations, defending the integrity of their products amidst escalating US-China tech tensions.

Chinese State Media Raises Alarm Over Nvidia H20 Chips

In a recent development that highlights the ongoing tensions in the global semiconductor industry, Chinese state-affiliated media has raised serious concerns about Nvidia's H20 artificial intelligence chips. The social media account Yuyuan Tantian, linked to China's state broadcaster CCTV, published an article on WeChat asserting that the H20 chips are "neither environmentally friendly, nor advanced, nor safe" 123.

Security Concerns and Allegations

Source: Tom's Hardware

Source: Tom's Hardware

The Chinese media outlet claimed that Nvidia's H20 chips could potentially have a hardware "backdoor" allowing functions such as "remote shutdown" 23. This allegation comes in the wake of China's cyberspace watchdog summoning Nvidia on July 31 to explain whether its H20 chips had any backdoor security risks 24.

These accusations are not isolated incidents. The People's Daily, the official newspaper of the Chinese Communist Party, has also criticized Nvidia, demanding that the company produce "convincing security proofs" to allay Chinese users' concerns and regain market trust 25.

Nvidia's Response

Nvidia has firmly denied these allegations. A company spokesperson stated, "Cybersecurity is critically important to us. NVIDIA does not have 'backdoors' in our chips that would give anyone a remote way to access or control them" 4. The company has consistently maintained that its products have no kill switches, backdoors, or spyware 1.

H20 Chips and Export Controls

Source: CNBC

Source: CNBC

The H20 chips were developed by Nvidia specifically for the Chinese market in response to U.S. export restrictions on advanced AI chips implemented in late 2023 23. The Trump administration temporarily banned their sales in April 2025 amid escalating trade tensions but reversed the ban in July 24.

Despite these challenges, Nvidia's H20 chips have sold surprisingly well in China, contributing to the company's record revenue even during the period of export control between April and July 2025 1.

Broader Implications

This controversy is part of a larger narrative in the ongoing tech tensions between the United States and China. U.S. export controls on some Nvidia chips are rooted in national security concerns that Beijing could use more advanced chips to gain an advantage in AI, including potential military applications 4.

The criticism from Chinese state media may be part of a broader campaign to steer domestic firms away from foreign AI hardware and toward homegrown alternatives like Huawei's Ascend chips 1. However, the ecosystem that Nvidia delivers makes its local competitors a much less compelling alternative for many Chinese organizations 1.

Market Response and Future Outlook

Source: Economic Times

Source: Economic Times

Despite the criticism, many Chinese organizations continue to purchase Nvidia products. There's even a burgeoning black market for banned AI chips, with an estimated billion dollars' worth of these GPUs sold in the past quarter 1.

As tensions continue to simmer, the semiconductor industry remains at the forefront of the complex technological and geopolitical landscape between the United States and China. The outcome of this situation could have far-reaching implications for global AI development and international trade relations.

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