China Blocks Nvidia AI Chip Sales to Domestic Tech Giants

In a significant move impacting the global AI industry, China has officially prohibited its tech companies from purchasing Nvidia’s advanced AI chips. This decision, announced by China’s Cyberspace Administration, marks a new phase in the ongoing technology standoff between China and the United States.

What Led to the Ban?

China’s top internet regulator has directed major tech players, including ByteDance and Alibaba, to stop testing and ordering Nvidia’s RTX Pro 6000D server. This product was explicitly developed for the Chinese market, but the ban now halts its deployment. The government’s stance has shifted from merely discouraging purchases to outright prohibition, signaling a stronger push toward supporting local chipmakers.

Impact on China’s Tech Ecosystem

While Chinese companies such as Huawei and Alibaba have their own AI chip designs, Nvidia remains the global leader in high-performance AI hardware. The ban could slow down the progress of AI innovation among Chinese firms, as many have relied on Nvidia’s cutting-edge technology to power their platforms and research.

• Local alternatives: China has been ramping up support for domestic semiconductor companies, but matching Nvidia’s capabilities remains a challenge.
• Global implications: The restriction may encourage further acceleration of China’s efforts to achieve self-sufficiency in AI and semiconductor technology.

A Shifting Regulatory Landscape

This development follows a series of regulatory changes and export controls:

• Earlier in 2025, the US government imposed licensing requirements on companies like Nvidia, restricting AI chip exports to China.
• Nvidia projected a loss of $8 billion in revenue for a single quarter due to these restrictions.
• After initial reversals and negotiations, the US allowed restricted sales with a 15% revenue cut going to the US government. Yet, Nvidia reported no sales to Chinese clients under this new structure due to slow rollout.

Nvidia’s Response

At a recent press conference, Nvidia CEO Jensen Huang commented on the situation, stating that the company respects national policies and remains patient as geopolitical agendas play out.

What’s Next?

This ban is expected to intensify efforts by Chinese tech firms to advance their own AI chip technology. Meanwhile, global supply chains and the AI industry will continue to adapt as international tech competition and regulation evolve.

References

• Financial Times: China bans Nvidia chip sales
• TechCrunch: Nvidia halts H20 chip production
• CNBC: Nvidia dominates AI chip market
• TechCrunch: US license requirement for Nvidia
• TechCrunch: Nvidia expects revenue loss
• TechCrunch: Nvidia to exclude China from forecasts
• TechCrunch: Nvidia resumes H20 sales
• Financial Times: White House imposes 15% revenue cut