China advises against using Nvidia H20 chips
Date: 2025-08-14 Author: Gabriel Deangelo Categories: IN WORLD
In recent weeks, several Chinese companies have received letters from government agencies advising them to refrain from using certain foreign chips. The most attention has been focused on Nvidia’s H20 model, which was recently approved for sale in China. The recommendations indicate that these chips should not be used by either government organizations or private companies associated with them.
While the ban is not explicit, the move by the authorities is drawing attention given the high demand for the H20 in Asia. This model is the most powerful of those approved for export to China by US regulators. In early 2025, the White House considered completely restricting supplies in order to weaken the development of China’s artificial intelligence industry. However, President Donald Trump abandoned the initiative in April after Nvidia agreed to invest heavily in developing AI infrastructure in the US.
However, certain restrictions remained, which negatively affected the company's financial results in the first two quarters of the year. On August 9, it became known that the export of H20 to China was still allowed, although the formal ban imposed by Joe Biden's decree was lifted back in May. According to media reports, the issuance of licenses is accompanied by a condition under which Nvidia and manufacturer AMD must transfer up to 15% of sales revenue to the US budget.
At the same time, Chinese authorities accused Nvidia of having "backdoors" in chips developed for the local market. According to Beijing, these hidden functions allow monitoring the operation of equipment and, if necessary, shutting it down remotely. Against this background, the advice to companies to refrain from using H20 looks like a logical continuation of the policy of strengthening technological independence.
According to Bloomberg, Beijing is increasing pressure on businesses, stimulating the transition to domestically produced chips. The documents also mentioned AMD, but without specifying the MI308 model. However, experts believe that both chips will remain in demand, since, despite the progress of local manufacturers, their products are not yet able to fully satisfy the needs of the Chinese AI industry for universal solutions.
The Financial Times notes that the recommendations have already begun to take effect: some companies are planning to reduce their purchases of H20. However, according to analysts, the market is in no hurry to completely abandon imported solutions, given their technical advantages in a number of specific tasks.
