In a significant development in the ongoing tech rivalry between the US and China, David Sacks, a prominent AI advisor to former President Trump, has revealed that China is actively rejecting US AI chip exports, particularly those from NVIDIA. This decision underscores China's commitment to bolstering its own semiconductor industry amidst rising tensions, as the source notes that the move is part of a broader strategy to enhance domestic capabilities.
China's Rejection of NVIDIA's H200 Chips
Sacks highlighted that China's rejection of NVIDIA's H200 chips is part of a broader strategy to achieve semiconductor independence. The Chinese government is focusing on enhancing local production capabilities and supporting domestic companies like Huawei, which has faced challenges from US sanctions.
US Strategy and Market Concerns
The US government's recent plan to permit H200 shipments to China was intended to counter Huawei's market dominance. However, Sacks expressed skepticism regarding the effectiveness of this strategy, suggesting that it may not yield the desired results. As China moves forward with a local approval process for H200 purchases, concerns are mounting over the potential impact on NVIDIA's revenue from the Chinese market, raising questions about the future of US-China tech relations.
Nvidia has addressed concerns from Democratic senators regarding its H200 chip sales to China, emphasizing compliance with national security regulations. This response contrasts with China's recent rejection of these chips as part of its strategy for semiconductor independence. For more details, see Nvidia's statement.
