China Bans Nvidia’s New AI Chips Amid Rising Tensions

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Beijing Blocks Latest Chip Purchases

Chinese tech giants including Alibaba and ByteDance are barred from buying or testing Nvidia’s RTX Pro 6000D chips, according to the Financial Times. The Cyberspace Administration of China issued the ban despite companies having placed large orders since the chips launched in July. Sources familiar with the matter told FT that thousands of units were already purchased before the prohibition.

Nvidia’s Response and U.S. Reaction

Nvidia CEO Jensen Huang voiced disappointment during a press event in London, ahead of attending a state dinner with President Donald Trump. “We probably contributed more to the China market than most countries have. And I’m disappointed with what I see,” Huang told reporters. He added that broader geopolitical issues are influencing trade decisions. U.S. House Speaker Mike Johnson criticized China, calling it a “peer-to-peer adversary” and accusing Beijing of ignoring fair trade practices and trademark laws.

Geopolitical and Trade Context

The ban comes after years of escalating chip trade disputes between the U.S. and China. Washington has restricted exports of advanced AI chips, while Beijing has curbed sales of critical materials. China has turned to less powerful Nvidia chips designed specifically for its market. In August, Nvidia worked with the Trump administration to secure a deal allowing sales of H20 chips in China in exchange for the U.S. government receiving 15% of the profits. The new ban highlights Beijing’s increasing focus on building domestic chip manufacturing capabilities to reduce dependence on American suppliers.

Outlook for Tech and Trade Relations

The restriction further complicates Nvidia’s position in one of its largest markets and underscores the broader U.S.-China technology rivalry. Analysts warn the move could accelerate China’s push for self-reliance in semiconductors while limiting U.S. firms’ revenue from the region. Investors and industry observers are watching closely to see whether the ban leads to broader restrictions on other AI hardware and sparks additional U.S. countermeasures.

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