Chinese customs officials are increasing scrutiny of Nvidia's AI chip imports, including the H20 and RTX Pro 6000D, as China aims to reduce reliance on U.S. technology. The intensified inspections occur amidst Beijing's broader initiative to promote domestic chip development and diminish dependence on American processors. This move follows orders for Chinese tech companies to decrease procurement of U.S.-made processors, driven by national security concerns and resentment toward U.S. export restrictions.
While Nvidia was authorised to resume chip sales to China earlier this year, demand has been limited. China is also investing heavily in local chipmakers like Huawei and SMIC. The customs checks target potential smuggling and ensure compliance with U.S. export controls. This situation places Nvidia in a precarious position, balancing U.S. regulations and Chinese market demands.
These stricter controls could further stimulate China's domestic chip industry, potentially impacting Nvidia's market share in the region. The long-term effects will depend on the success of China's domestic chip initiatives and the evolving geopolitical landscape.
