China Cracks Down on Nvidia H20 Chips Following US Remarks

Following remarks by US Commerce Secretary Howard Lutnick, China has taken action to limit the sale of Nvidia’s H20 AI chip. Three government agencies responded to Lutnick’s comments last month, prompting a shift in Chinese tech companies’ purchasing decisions. While initially popular due to Huang’s warm reception during his visit to China, demand for H20 chips dwindled after Lutnick expressed doubt about Nvidia’s second-tier offerings. This led to several tech groups pausing or cutting orders of the chip as they sought alternatives from local manufacturers like Cambricon and Huawei.