Does Beijing’s Nvidia ban signal a new phase in US-China tech standoff?

China’s internet regulator orders domestic tech giants to halt purchases of Nvidia’s China-specific RTX Pro 6000D processors, signaling escalation in semiconductor sovereignty push.

China has apparently instructed its major technology companies to cease purchasing and testing Nvidia’s RTX Pro 6000D artificial intelligence chips, marking a significant escalation in the ongoing semiconductor dispute between Beijing and Washington.

According to a report from the Financial Times, quoting unnamed sources, the Cyberspace Administration of China (CAC), the country’s primary internet regulator, issued the directive to prominent firms including ByteDance, TikTok’s parent company, and e-commerce giant Alibaba. The companies were ordered to immediately halt all testing and verification work with Nvidia’s server suppliers for the China-specific chip model.

The move represents a stark departure from previous Chinese government guidance, which merely discouraged domestic firms from purchasing Nvidia products while promoting local alternatives. “The message is now loud and clear,” an unnamed Chinese tech executive told the Financial Times. “Earlier, people had hopes of renewed Nvidia supply if the geopolitical situation improves. Now it’s all hands on deck to build the domestic system.”

Nvidia CEO Jensen Huang expressed disappointment with the development during a media briefing in London, where he is accompanying President Donald Trump on a state visit. “I think that we could only be in service of a market if the country wants us to be,” Huang said when asked about the Financial Times report. The CEO indicated he would likely discuss the situation with Trump at a state banquet on Wednesday evening.

The RTX Pro 6000D was specifically designed by Nvidia to comply with US export control regulations while serving the Chinese market. The chip was initially created to fill the void left by the previously banned H20 processors, another lower-specification product designed exclusively for China. Several Chinese companies had indicated plans to order tens of thousands of the processors and had begun preliminary testing phases before receiving the CAC directive.

The timing of Beijing’s action coincides with China’s assessment that domestic chip manufacturers have achieved technological parity with Nvidia’s China-market offerings. According to the same Financial Times report, Chinese regulators recently concluded that locally-manufactured AI processors from companies including Huawei, Cambricon, Alibaba, and Baidu are now comparable or superior to the downgraded Nvidia products permitted for Chinese purchase.

This development follows China’s August mandate requiring publicly-owned domestic data centre companies to source at least 50 percent of their semiconductor needs from Chinese producers. That directive came after the government claimed that Nvidia’s H20 chips posed national security risks, expressing concerns about potential backdoor access.

The chip restrictions compound Nvidia’s challenges in China, which historically represented a crucial revenue source for the Santa Clara-based company. Earlier this week, China’s State Administration for Market Regulation opened an antitrust investigation into Nvidia over its 2020 acquisition of Israeli networking company Mellanox, alleging violations of monopoly laws and acquisition conditions.

Despite technological progress, industry analysts suggest China remains several years behind the most advanced semiconductor capabilities. However, Beijing’s confidence in domestic chip manufacturing capabilities appears to be driving the more aggressive stance toward foreign suppliers.

The semiconductor dispute reflects broader tensions over technological sovereignty between the world’s two largest economies. The US has maintained strict export controls on advanced chip technologies to China, citing national security concerns over potential military applications. Last month, the White House reached agreements with Nvidia and Advanced Micro Devices to restart certain chip sales to China, with both companies agreeing to pay 15% of sales to the US government as part of licensing arrangements.

For the broader technology ecosystem in Asia, the Chinese directive signals a potential acceleration in the region’s pursuit of semiconductor self-sufficiency. The move may prompt other nations to reassess their dependence on US chip technologies while evaluating domestic and regional alternatives.