Chinese authorities are tightening control over Nvidia H20 chip purchases in response to discontent among senior officials following the remarks of US Secretary Howard Lutnick.
China's Response to US Secretary's Comments
China is seeking to cut back on purchases of Nvidia's H20 chips, used in local AI projects, after Howard Lutnick's comments asserting that the US doesn't sell its best technology to China. "We don't sell them our best stuff, not our second-best stuff, not even our third-best," said Lutnick in an interview with CNBC.
Interest in Nvidia H20 Chips in China
Despite the recent restrictions, interest in Nvidia's H20 chips remains high. Following Jensen Huang's warm welcome in China, many local companies began actively ordering chips, prompting TSMC to reopen production lines for these chips.
Statements from Chinese Regulators
After Lutnick's comments, the Cyberspace Administration of China (CAC) issued informal recommendations to major platforms like Alibaba and ByteDance to pause their orders of Nvidia chips. CAC expressed concerns about possible location tracking features; however, Nvidia denied these claims. The Ministry of Industry and Information Technology (MIIT) also engaged with Chinese tech executives to solidify this stance.
Amid current geopolitical tensions and technological competition between China and the US, the new restriction on Nvidia chip purchases may influence technology development in China and its quest for independence in high-tech.
