Chinese authorities have issued guidance to local companies advising against the use of Nvidia’s H20 artificial intelligence chips, particularly in government-related projects, Bloomberg News reported on Tuesday, citing people familiar with the matter.
According to the report, notices were sent to a range of firms discouraging the use of the H20, which is Nvidia’s most advanced AI chip currently allowed for sale in China.
The guidance reportedly took a strong stance against deploying the semiconductors for any government or national security-related applications, whether by state-owned enterprises or private companies.
In a statement to the news publication, Nvidia said the H20 chip “is not a military product or for government infrastructure.”
The company added that China has sufficient domestic chip supply to meet its needs and “won’t and never has relied on American chips for government operations,” drawing a parallel to how the US government would not use Chinese chips for its own operations.
The move follows reports in Chinese state media raising security concerns over the H20.
Nvidia has maintained that its products do not contain “backdoors” that could allow remote access or control.
US-China tech tensions
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The guidance comes as US-China technology tensions continue to play out in the semiconductor sector.
On Monday, US President Donald Trump suggested he might permit Nvidia to sell a scaled-down version of its next-generation Blackwell GPU chip in China.
Washington has expressed concerns that advanced US AI technology could bolster China’s military capabilities.
The H20, based on Nvidia’s older Hopper architecture, is currently the most advanced AI chip the company is authorised to sell in China.
The Trump administration approved exports of the model to the Chinese market last month.
The report also suggested that China’s notices also affect AI accelerators made by Advanced Micro Devices.
However, it was unclear whether AMD’s MI308 chip was specifically named in the guidance.
The Trump administration has confirmed an unprecedented agreement with Nvidia and AMD under which the US government will receive 15% of revenue from certain advanced chip sales in China.
The latest Chinese guidance marks another turn in the ongoing trade and technology competition between the two nations, adding to uncertainty for chipmakers navigating geopolitical and regulatory challenges.
The Chinese government’s stance could complicate Nvidia and AMD’s efforts to sell hardware in the world’s largest semiconductor market.
It also casts doubt on the Trump administration’s justification for permitting such exports just months after imposing an effective ban.
While several senior US officials have said the policy reversal was part of a trade accord with China, Beijing has publicly stated that resumed H20 shipments were not included in any bilateral deal.
Recent notices to companies suggest China may never have sought such a concession from Washington in the first place.