TLDR: China’s cyberspace regulator has summoned Nvidia to address alleged security risks associated with its H20 AI chips, which were recently cleared for export to China after a U.S. ban reversal. The Cyberspace Administration of China (CAC) is concerned about potential tracking, positioning, and remote control functions within the chips, requesting explanations and supporting evidence from Nvidia. Nvidia has denied the existence of “backdoors” in its chips.
Beijing, China – The Cyberspace Administration of China (CAC), the nation’s internet watchdog, has summoned U.S. chip giant Nvidia to a meeting to discuss potential security vulnerabilities in its H20 artificial intelligence chips. This development comes just weeks after the U.S. reversed an export ban, allowing Nvidia to resume sales of the H20 chip to China. The CAC expressed concerns that the H20 chips might contain “tracking and positioning functions” and “remote shutdown” capabilities, which U.S. lawmakers have reportedly advocated for in advanced chips exported abroad. The regulator is seeking explanations and relevant supporting materials from Nvidia to ensure the network and data security, as well as the privacy rights, of Chinese users.
Nvidia, in response to the allegations, stated that “Cybersecurity is critically important to us. Nvidia does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.” The H20 chip was specifically designed by Nvidia for the Chinese market to comply with U.S. export restrictions imposed in late 2023 on advanced AI chips. It has been a top seller in China since 2024.
This inquiry by Chinese authorities highlights the ongoing tensions in U.S.-China technology relations. The U.S. Commerce Department had initially restricted Nvidia from selling these chips to China in April, citing national and economic security concerns. Senator Elizabeth Warren (D-Massachusetts) had previously warned that H20 exports could enable China to develop “more cutting-edge data centers,” potentially causing the United States to fall behind. The “Chip Security Act,” introduced in the U.S. House and Senate in May, proposes requiring AI chips under export restrictions to include location-tracking systems to prevent unauthorized use, a measure specifically aimed at China.
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China has previously taken action against U.S. tech companies over security concerns. In early 2023, China barred key infrastructure operators from purchasing products from U.S. memory chip maker Micron, citing serious security risks. Nvidia is also currently facing an antitrust investigation in China by the State Administration for Market Regulation over suspected violations of the country’s anti-monopoly law. Meanwhile, Chinese companies like Huawei are developing their own alternatives, such as the Ascend 920 chip, which is expected to begin mass production in the second half of 2025, signaling China’s efforts to reduce reliance on foreign technology.
