Nvidia's H20 Chip Caught in US-China AI Trade Tensions
50 Sources
[1]
China tells Alibaba, ByteDance to justify purchases of Nvidia AI chips
Beijing is demanding tech companies including Alibaba and ByteDance justify their orders of Nvidia's H20 artificial intelligence chips, complicating the US chipmaker's business in China after striking an export arrangement with the Trump administration. The tech companies have been asked by
[2]
Why Trump Flip-Flopped on Nvidia Selling H20 Chips to China
The tech industry is reeling from President Trump's surprising new deal with Nvidia. Earlier this week, Trump said he would allow the company to continue selling its H20 chips to China in exchange for a 15 percent share of the revenues. "The H20 is obsolete. You know, it's one of those things, but
[3]
Nvidia responds to claim China is urging local companies to avoid Nvidia H20 -- report claims authorities have sent notices discouraging use, especially for government-related purposes
It follows state media-raised concerns about security and safety Just hours after President Trump confirmed a new deal that will see Nvidia pay 15% of sales revenue to the government in exchange for H20 export licenses, a new Bloomberg report claims that China's government has been urging local
[4]
White House confirms it's still figuring out the legality of revenue-sharing Nvidia and AMD deal for China GPU sales -- 'The legality of it, the mechanics of it, is still being ironed out'
President Trump wants a 15% cut on Nvidia's and AMD's export-controlled China sales -- but will the courts allow him? Just days after confirming that the White House has struck a revenue-sharing deal with AMD and Nvidia in exchange for AI chip export licenses, Washington seems to have confirmed
[5]
The tale of Nvidia's HGX H20: How an AI GPU became a political lightning rod
Nvidia's HGX H20 AI GPU represents a fraction of the company's revenue, but the number of its mentions in the business media far outpaces mentions of the company's much more powerful and lucrative H100 or B200 processors. In fact, this specific GPU model has gained a fair bit of notoriety over the
[6]
China state media says Nvidia H20 GPUs are unsafe and outdated, urges Chinese companies to avoid them -- says chip is 'neither environmentally friendly, nor advanced, nor safe'
A social media account linked to Chinese state media wrote an article on WeChat asserting that Nvidia's H20 chips are neither technologically advanced nor environmentally friendly. According to Reuters, the account, Yuyuan Tantian, is connected to China Central Television, which is a key
[7]
Trump's Deal With Nvidia Offers Path Forward in Global Trade War
President Donald Trump's controversial plan to take a cut of revenue from chip sales to China has US companies reconsidering their plans for business with the country, offering a model for circumventing years of trade tensions. Experts and people familiar with the matter said the surprise deal, in
[8]
China warns against using Nvidia H20s for government jobs
Don't need to give Uncle Sam any more reason to think kill switches are a good idea Nvidia may have the Trump administration's blessing to resume shipments of its H20 AI accelerators to China, but in Beijing, government officials are now pressuring companies to use what they describe as
[9]
Trump's unusual Nvidia deal raises new corporate and national security risks, lawmakers and experts say
Aug 11 (Reuters) - U.S. President Donald Trump upended decades of U.S. national security policy, creating an entirely new category of corporate risk, when he made a deal with Nvidia (NVDA.O), opens new tab to give the U.S. government a cut of its sales in exchange for resuming exports of banned AI
[10]
China urges local firms not to use Nvidia's H20 chips, Bloomberg News reports
Aug 12 (Reuters) - Chinese authorities have urged local companies to avoid using Nvidia's (NVDA.O), opens new tab H20 processors, particularly for government-related purposes, Bloomberg News reported on Tuesday, citing people familiar with the matter. Authorities have sent notices to a range of
[11]
China's Nvidia pushback is only just beginning
HONG KONG, Aug 12 (Reuters Breakingviews) - China's relationship with Nvidia (NVDA.O), opens new tab just got messier. Just one month after boss Jensen Huang's rockstar welcome in the People's Republic, state media has blasted the $4.4 trillion chipmaker's popular H20 processors over security
[12]
China urges firms not to use Nvidia's H20 chips, Bloomberg News reports
Aug 12 (Reuters) - Chinese authorities have urged local companies to avoid using Nvidia's (NVDA.O), opens new tab H20 processors, particularly for government-related purposes, Bloomberg News reported on Tuesday, citing people familiar with the matter. Authorities have sent notices to a range of
[13]
China cautions tech firms over Nvidia H20 AI chip purchases, sources say
Aug 12 (Reuters) - Chinese authorities have summoned domestic companies including major internet firms Tencent (9888.HK), opens new tab and ByteDance over their purchases of Nvidia's (NVDA.O), opens new tab H20 chips, asking them to explain their reasons and expressed concerns over information
[14]
Chinese state media says Nvidia H20 chips not safe for China
BEIJING, Aug 10 (Reuters) - Nvidia's (NVDA.O), opens new tab H20 chips pose security concerns for China, a social media account affiliated with China's state media said on Sunday, after Beijing raised concerns over backdoor access in those chips. The H20 chips are also not technologically advanced
[15]
China warns companies against using Nvidia and AMD chips, report says
Authorities have recently told companies to avoid using the Nvidia chips, or those from Advanced Micro Devices, for government and national security use cases, according to the news outlet. The report comes after the White House confirmed on Monday that both Nvidia and AMD have agreed to give 15%
[16]
White House says it's working out legality of Nvidia and AMD China chip deals
U.S. President Donald Trump (L) invites Nvidia CEO Jensen Huang to speak in the Cross Hall of the White House during an event on "Investing in America" on April 30, 2025 in Washington, DC. The Trump administration is still working out the details of its 15% export tax on Nvidia and AMD and could
[17]
Chinese state media says Nvidia H20 chips not safe for China
Visitors visit the NVIDIA booth at the 3rd China International Supply Chain Expo in Beijing, China, on July 20, 2025. Nvidia's chips pose security concerns for China, a social media account affiliated with China's state media said on Sunday, after Beijing raised concerns over backdoor access in
[18]
Nvidia claps back against Chinese accusations its H20 chips pose a security risk
Chip giant Nvidia pushed back Sunday in response to allegations from Chinese state media that its H20 artificial intelligence chips are a national security risk for China. Earlier in the day, Reuters reported Yuyuan Tantian, an account affiliated with Chinese state broadcaster CCTV, said in an
[19]
Trump's chip deal sets new pay-to-play precedent for U.S. exporters
President Donald Trump listens as Nvidia CEO Jensen Huang speaks about investing in the United States at a White House event on April 30. (Andrew Harnik/Getty Images) President Donald Trump's agreement with two leading American producers of computer chips to take a cut of their revenue in exchange
[20]
What investors see in the sale of AI chips to China
Why it matters: Shareholders are focusing on the revenue opportunities that come with more access to Beijing, not on the unprecedented involvement of the Trump administration in Nvidia's business dealings. What they're saying: "There's way more upside," Daniel Newman, principal analyst and CEO of
[21]
What to Know About Trump's Nvidia Deal and China's Response
The world's most valuable company is now at the center of President Donald Trump's trade war with China. Trump said Monday that he has cut a deal with chipmaker Nvidia, allowing it to sell certain artificial intelligence chips to China in exchange for a cut of the revenue, which would go to the
[22]
Trump's Nvidia deal for China sales raises security concerns
The U.S. government is about to be Nvidia's business partner in China. The major chipmaker recently struck a profit-sharing deal with the Trump administration to send over 15% of the revenue gained from sales of its H20 microchip, one that's geared towards the Chinese market and meant to power AI
[23]
U.S.-China chip war: How Trump's Nvidia-AMD deal has redefined Washington's export control policy
Under both the first Trump and Biden administrations, Washington argued that it needed to limit China's technological development by barring more and more sensitive products from being exported to its strategic rival. Now, Trump's decision to allow Nvidia and AMD to sell their advanced AI chips to
[24]
Why Nvidia and AMD's China pay-to-play deal with Trump could backfire
The companies making the most money from the AI boom are the ones selling the processors, such as Nvidia and AMD. On Monday those two chip giants cut a deal with the Trump administration that will allow them to sell their products into the China market. For Nvidia -- the dominant provider of AI
[25]
US government will use 15% sales tax on NVIDIA and AMD AI GPUs to China to pay down debt
TL;DR: The US government will impose a 15% sales tax on NVIDIA and AMD AI chips exported to China, using the revenue to reduce US debt. This policy, initiated under the Trump administration, aims to balance economic benefits with national security by restricting advanced chip exports while
[26]
Nvidia denies H20 AI chip "back doors" for China
David Reber Jr., Nvidia's Chief Security Officer, stated in a blog post last week that "There are no back doors in Nvidia chips. No kill switches. No spyware. That's not how trustworthy systems are built -- and never will be." Nvidia Corp. addressed Chinese regulator concerns regarding "tracking
[27]
Analysis-Trump's Unusual Nvidia Deal Raises New Corporate and National Security Risks, Lawmakers and Experts Say
By Karen Freifeld, Arsheeya Bajwa and Alexandra Alper (Reuters) -U.S. President Donald Trump upended decades of U.S. national security policy, creating an entirely new category of corporate risk, when he made a deal with Nvidia to give the U.S. government a cut of its sales in exchange for
[28]
Trump's China deal on AI chips prompts significant security concerns
President Trump's reversal on previously blocked chip sales to China has sparked cries that the White House is selling out America's security concerns in a bid to raise revenue. Trump on Monday agreed to allow tech giants Nvidia and AMD to secure export licenses to sell their advanced artificial
[29]
'Bizarre' Nvidia, AMD chip export deal with Trump raises legal questions
Two major chipmakers in the U.S., Nvidia and AMD, have struck an unusual agreement with the federal government to share some of their revenue from chip sales to China -- a deal that experts say raises constitutional questions and may set a concerning new precedent. The two firms have agreed to
[30]
Chinese State Media Says Nvidia H20 Chips Not Safe for China
BEIJING (Reuters) -Nvidia's H20 chips pose security concerns for China, a social media account affiliated with China's state media said on Sunday, after Beijing raised concerns over backdoor access in those chips. The H20 chips are also not technologically advanced or environmentally friendly, the
[31]
Trump's unusual Nvidia deal raises new corporate and national security risks - The Economic Times
President Trump struck an unprecedented deal allowing Nvidia and AMD to resume AI chip sales to China in exchange for giving the US government 15% of related revenue. Critics call it a dangerous "pay-for-play" precedent undermining export controls, raising legal doubts, and potentially reshaping
[32]
Do Nvidia's H20 chips pose security risks? China sounds alarm, orders firms to avoid them
Nvidia H20 chips China: In a significant escalation of its tech self-reliance push, Chinese authorities have quietly issued guidance urging domestic firms to steer clear of Nvidia's H20 chips, especially when used in government-related or national security-related work by state enterprises or
[33]
Trump's 15% China cut may not worry Nvidia much
A look at balance-sheet math goes a long way to explaining why. In the first quarter, Nvidia said it sold $5.5 billion in products to China, roughly 13% of its total. The chips exposed to the Trump tax accounted for about 80% of that, or just under $5 billion. President Donald Trump's move to
[34]
Chinese state media says Nvidia H20 chips not safe for China - The Economic Times
The H20 chips are also not technologically advanced or environmentally friendly, the account, Yuyuan Tantian, which is affiliated with state broadcaster CCTV, said in an article published on WeChat.Nvidia's H20 chips pose security concerns for China, a social media account affiliated with China's
[35]
Chinese state media says Nvidia H20 chips not safe for China
A Chinese state media account has raised security concerns about Nvidia's H20 chips, developed for the Chinese market after U.S. export restrictions. The account, affiliated with CCTV, claims the chips are not technologically advanced, environmentally friendly, or secure, alleging potential
[36]
Trump Open To Scaled-Down Nvidia Blackwell AI Chip For China: Jensen Huang Is 'Coming To See Me Again About That' - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)
U.S. President Donald Trump has expressed openness to Nvidia Corporation's NVDA proposal to sell a downgraded version of its next-generation Blackwell AI chip to China, with performance reductions of up to 50%, despite concerns over national security. Nvidia Could Get Go Ahead To Sell Blackwell In
[37]
China Raises Security Red Flags Over Nvidia's H20 Chips As Trump Pushes For 15% Revenue Share: Report - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)
China has reportedly raised security concerns about Nvidia Corp.'s NVDA H20 chips, especially regarding potential backdoor risks, while the U.S. government, spearheaded by Donald Trump, pushes for a 15% revenue share from sales to China as part of its deal with the chipmaker. China Warns Firms Off
[38]
NVIDIA Faces Another Headache As Chinese Government Asks Local Firms To Not Use The H20 AI GPUs Cleared By US Government
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. After news broke of the Trump administration levying a 15% commission on NVIDIA and AMD's chip sales to China, sources quoted by Bloomberg claim that the
[39]
Chinese Big Tech Has Reportedly Been Ordered by the Government to Suspend Purchases of NVIDIA's H20 AI Chips, Creating Massive Uncertainty for Jensen and His China Ambitions
NVIDIA's H20 AI chips have reportedly been barred from being purchased by AI tech giants from China, amid reports of security backdoors that are concerning Beijing. Well, things aren't turning out how they should for NVIDIA's business in China right now. After Jensen struggles to get the green
[40]
Trump's deal with Nvidia offers path forward in global trade war
U.S. President Donald Trump's controversial plan to take a cut of revenue from chip sales to China has U.S. companies reconsidering their plans for business with the country, offering a model for circumventing years of trade tensions. Experts and people familiar with the matter said the surprise
[41]
China Still Isn't Ready to Bet on H20 AI Chips Amid Ongoing State Media Concerns Over Security & Hardware Backdoors Despite NVIDIA's Assurances
NVIDIA's H20 AI chips won't be easy to get into Chinese AI markets, as the local state media is voicing opposition against the move, citing potential backdoors. NVIDIA's H20 AI Chips Aren't "Advanced or Environmentally Friendly", Says State Media Broadcaster Team Green spent a lengthy time
[42]
Nvidia Says There Are No 'Backdoors' In Its Chips As Beijing Demands Answers: 'No Kill Switches, No Spyware' - NVIDIA (NASDAQ:NVDA)
Nvidia Corp. NVDA issued a forceful denial days after China's cyberspace regulator summoned the company over alleged "tracking and positioning" risks in H20 AI chips newly cleared for some exports, calling hidden controls nonexistent and dangerous. What Happened: "There are no back doors in Nvidia
[43]
Nvidia's H20 Chips Under Fire In China Over Security Fears As US Export Deal Sparks Backlash: Report - NVIDIA (NASDAQ:NVDA)
Nvidia Corporation's NVDA H20 artificial intelligence chips are facing mounting security concerns in China, with state media and regulators raising alarms about potential backdoor risks while the U.S. government secures revenue-sharing deals with the chipmaker for export licenses. China Raises
[44]
Trump Allows AI Chips Export to China With 15% Revenue Share
MediaNama's Take: The US President Donald Trump allowing Nvidia and AMD to export AI chips to China for a 15% revenue share seems more like an agreement that functions purely on numbers and monetary gains rather than a national security issue. It is not clear how the threat of China outpacing the
[45]
Trump's unusual Nvidia deal raises new corporate and national security risks, lawmakers and experts say
U.S. President Donald Trump upended decades of U.S. national security policy, creating an entirely new category of corporate risk, when he made a deal with Nvidia to give the U.S. government a cut of its sales in exchange for resuming exports of banned AI chips to China. Historically, the U.S.
[46]
Chinese state media says Nvidia H20 chips not safe for China
Nvidia's H20 chips pose security concerns for China, a social media account affiliated with China's state media said on Sunday, after Beijing raised concerns over backdoor access in those chips. The H20 chips are also not technologically advanced or environmentally friendly, the account, Yuyuan
[47]
Trump's Nvidia, AMD China Export Deal Risks Market Stability | Investing.com UK
The recent deal between Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD), and the US government marks an alarming shift in how trade policy is being conducted. Under the agreement, the two semiconductor giants will hand over 15% of their China AI chip revenues in exchange for export licences. This
[48]
China urges firms not to use Nvidia's H20 chips, Bloomberg News reports
(Reuters) -Chinese authorities have urged local companies to avoid using Nvidia's H20 processors, particularly for government-related purposes, Bloomberg News reported on Tuesday, citing people familiar with the matter. Authorities have sent notices to a range of firms discouraging use of the
[49]
China urges local firms not to use Nvidia's H20 chips, Bloomberg News reports
(Reuters) -Chinese authorities have urged local companies to avoid using Nvidia's H20 chips, particularly for government-related purposes, Bloomberg News reported on Tuesday, a move likely to hamper the firm's efforts to revive its slumping China sales. A range of firms were sent official notices
[50]
Chinese state media says Nvidia H20 chips not safe for China
BEIJING (Reuters) -Nvidia's H20 chips pose security concerns for China, a social media account affiliated with China's state media said on Sunday, after Beijing raised concerns over backdoor access in those chips. The H20 chips are also not technologically advanced or environmentally friendly, the
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Nvidia's H20 AI chip becomes a focal point in US-China trade relations, with both countries implementing measures affecting its sale and use. The situation highlights the complex interplay of technology, geopolitics, and economic interests in the AI sector.
Nvidia's H20 Chip: A Geopolitical Flashpoint
Nvidia's H20 AI chip has become a focal point in the ongoing technological and trade tensions between the United States and China. This specialized processor, designed for artificial intelligence workloads, has sparked a complex series of events involving export controls, revenue-sharing agreements, and national security concerns
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Source: Tom's Hardware
Trump Administration's Export Deal
In a surprising turn of events, the Trump administration has negotiated a deal with Nvidia and AMD to allow the export of their AI chips to China. Under this arrangement, the companies would pay 15% of their China-related revenues to the U.S. government in exchange for export licenses
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. President Trump stated, "The H20 is obsolete. You know, it's one of those things, but it still has a market. So we negotiated a little deal"2
.However, the legality and implementation of this revenue-sharing agreement remain uncertain. The White House spokesperson, Karoline Leavitt, admitted, "The legality of it, the mechanics of it, is still being ironed out by the Department of Commerce"
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. Legal experts have raised concerns about potential conflicts with the U.S. Constitution's Export Clause and existing export control laws4
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Source: The Hill
China's Response and Domestic Alternatives
Despite the U.S. government's apparent willingness to allow H20 exports, Chinese authorities have reportedly been discouraging local companies from using these chips. Bloomberg reported that China has sent notices to firms over the past few weeks, urging them to avoid using Nvidia's H20 processors, especially for government-related purposes
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.Beijing's concerns reportedly center around potential security issues, including location-tracking and remote shutdown capabilities – claims that Nvidia strongly denies
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. This move appears to be part of a broader strategy to promote domestic alternatives and reduce reliance on Western technology1
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.Related Stories
Impact on Nvidia and the AI Chip Market
The situation has created a complex landscape for Nvidia. While the company initially saw the H20 as a way to maintain its presence in the Chinese market amid stricter U.S. export controls, it now faces challenges from both sides
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. Chinese tech giants like Alibaba and ByteDance are being asked to justify their purchases of H20 chips instead of using domestic alternatives1
.Bernstein analysts predict that Nvidia's market share in China could drop from 66% in 2024 to 55% this year
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. Meanwhile, Chinese chipmakers like Huawei and Cambricon are gaining ground in the domestic market1
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Source: Tom's Hardware
Broader Implications for AI and Trade Policy
This situation highlights the intricate relationship between advanced technology, national security, and international trade. The Biden administration's earlier export controls were driven by concerns about China potentially gaining a significant advantage in AI capabilities
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. Now, the Trump administration's approach seems to balance economic interests with security concerns, albeit through a legally questionable method2
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.The H20 chip saga also underscores the global race in AI development and the strategic importance placed on controlling access to advanced AI hardware. As both the U.S. and China continue to navigate this complex landscape, the repercussions are likely to extend beyond just Nvidia and the H20 chip, potentially reshaping the global AI industry and international technology policies
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