In the ongoing saga of the U.S.-China tech rivalry, a new twist has emerged. China’s Cyberspace Administration has reportedly banned Chinese tech companies, including giants like Alibaba and ByteDance, from purchasing a specific, custom-made Nvidia AI chip. This move comes despite these companies having already placed orders for thousands of the new RTX Pro 6000D chips. Nvidia designed this product specifically for the Chinese market.
The decision is the latest development in a high-stakes back-and-forth between the world’s two largest economies over control of high-end AI technology. The ban is particularly noteworthy because it follows a recent deal brokered by the Trump administration that allowed Nvidia to sell its H20 chips to China in exchange for a 15% cut of the profits. This earlier agreement was a way to navigate previous export restrictions imposed by the Biden administration.
Nvidia’s RTX Pro 6000D AI chips are reportedly banned in China
Reactions to the ban have been swift. Speaking from London, Nvidia CEO Jensen Huang expressed his disappointment but also an understanding of the bigger picture. “We probably contributed more to the China market than most countries have,” Huang said. “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.”
Meanwhile, Republican House Speaker Mike Johnson took a stronger stance. In an interview with CNBC, he called China a “peer-to-peer adversary” of the U.S. He accused the country of intellectual property theft and a disregard for fair trade agreements. Johnson placed the blame for the strained relations squarely on China. “It is not the fault of the United States that there are these strained relations. It is the fault of China,” he stated.
This is nothing more than another development in the complicated relationship between both countries. The U.S. continues to limit the sale of advanced chips to China for national security reasons. Meanwhile, China is doubling down on its efforts to build up its own domestic chip manufacturing capabilities. The ban on Nvidia’s chips is another sign that this geopolitical struggle is far from over.