Nvidia Chips Banned In China: Is Trump's Trade War The Reason? What Will Companies Do Now?

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00:00The world's most valuable firm by market cap, NVIDIA, is facing issues in China.

00:06The tech war between China and U.S. is the center of it.

00:10The Cyber Space Administration of China has reportedly ordered firms like ByteDance and Alibaba

00:18to stop using and testing NVIDIA's AI chips.

00:22Now, it has been a roller coaster for the company.

00:24Just a few months ago, its CEO announced that the U.S. will allow it to resume sales of

00:32made-for-China H20 graphics processing units, reversing previous halts, and now this report

00:38has come as a shock for him.

00:40But why China wants to stop NVIDIA to enter its markets now?

00:45Here's a report.

00:47In a significant escalation of the ongoing tech tensions between the U.S. and China,

00:52China has officially banned its leading domestic technology companies from purchasing NVIDIA's

00:58artificial intelligence chips.

01:00This directive comes from the Cyber Space Administration of China, the country's Internet

01:04Regulatory Authority, which ordered firms like ByteDance and Alibaba to immediately halt testing,

01:11cancel existing orders, and stop procuring NVIDIA's latest RTX Pro 6000D server chips,

01:18customized for the Chinese market.

01:19This move marks a major step in China's broader strategy to reduce dependency on U.S. technology

01:26imports and boost its indigenous semiconductor industry.

01:30While companies like Huawei and Alibaba have been developing their own AI chips, NVIDIA remains

01:36the global leader in high-performance AI GPUs, making this ban a heavy blow to China's AI ecosystem.

01:42The RTX Pro 6000D chip was designed specifically to meet China's regulatory and market environment, aiming

01:51to circumvent earlier U.S. export restrictions.

01:54Some Chinese firms had started testing and validation phases with NVIDIA's partners, even

02:00signaling intent to procure tens of thousands of these chips.

02:03However, the regulator's order abruptly stopped these activities.

02:08For NVIDIA, the ban presents serious challenges.

02:11CEO Jensen Huang, speaking at a London press conference during a U.S. state visit, expressed his disappointment,

02:18but took a diplomatic stance.

02:20We can only serve a market if a country wants us to be, he said.

02:24Huang acknowledged the complexity of the geopolitical tensions behind this decision,

02:29and described NVIDIA's China business as a bit of a roller coaster.

02:33He stressed patience and reiterated NVIDIA's willingness to support Chinese companies and

02:38government needs as appropriate.

02:40From the U.S. perspective, this development adds further strain on already tense relations.

02:46The American government has imposed its own export restrictions on advanced AI chips to China.

02:51The chip maker had already endured setbacks, including estimated revenue losses of $8 billion

02:57in the second quarter due to limited access to the Chinese market.

03:01Though some measures have eased, such as licensing permits granted earlier in 2025 with conditions

03:08on revenue sharing, NVIDIA has yet to finalize sales to China under these rules.

03:13The stock market reacted swiftly, with NVIDIA's shares dipping by around 2% to 3% following the

03:19announcement, reflecting investor concerns on the company's growth prospects in the world's

03:24second-largest computing market.

03:25If you like this video, then like, share and subscribe to ETNOW.

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