StockMarket.News
2025.09.17 12:44

China just dealt a major blow to Nvidia.

This week, Beijing’s Cyberspace Administration ordered the country’s biggest tech players ByteDance, Alibaba, Baidu to halt all testing and orders of Nvidia’s RTX Pro 6000D, a chip specifically designed for the Chinese market. Companies had lined up tens of thousands of units and already begun verification with server partners. Overnight, the orders were scrapped.

This goes beyond earlier guidance, which only restricted Nvidia’s H20 chip. Regulators concluded that Chinese AI processors from Huawei, Cambricon, and others had reached performance levels equal to or even better than Nvidia’s China-only models. In other words, they believe the country doesn’t need Nvidia anymore.

For Nvidia, it’s a gut punch. The company already faced U.S. export bans on its most advanced GPUs. Now Beijing has cut off demand for its watered-down replacements too. China has been one of Nvidia’s biggest growth markets, and this move could erase billions in future sales.

For China, the message is clear: self-reliance. By forcing domestic firms to drop Nvidia, Beijing is betting it can accelerate the growth of a homegrown semiconductor industry and close the gap in the AI arms race with the U.S. Companies that once depended on Nvidia are now being told to build, buy, and back Chinese chips.

The implications are huge. If China succeeds, the world could split into two separate AI hardware ecosystems, one dominated by Nvidia and the West, the other built around Chinese tech champions. That would harden the lines in the U.S.–China tech war, fragment global supply chains, and risk slowing cross-border innovation.

And there’s risk on China’s side too: cutting off access to Nvidia could mean short-term setbacks in AI performance and adoption. But long term, this is about independence. Beijing is making it clear that when it comes to the next era of computing, it doesn’t want to be held hostage by U.S. chips.

Source: StockMarket.News

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