September 19, 2025 | 08:45 am
TEMPO.CO, Jakarta - The China's Cyberspace Administration banned domestic technology companies from purchasing Nvidia's AI chips. The institution has also told tech giants such as ByteDance and Alibaba to cease testing and ordering Nvidia RTX Pro 6000D servers, devices specifically designed for the Chinese market.
Since the end of last August, the Chinese government has requested local companies to reduce their dependency on Nvidia chips and switch to local products. This ban has affected the technology ecosystem in China, which mostly adopts Nvidia products. Designs from domestic players like Huawei and Alibaba are still less dominant compared to the American semiconductor manufacturer.
Quoting a report from Tech Crunch on Wednesday, August 17, 2025, Nvidia's Chief Executive Officer (CEO) Jensen Huang stated that the company can only serve a market in a country that desires Nvidia products. “I’m disappointed with what I see but they have larger agendas to work out between China and the United States. And I’m patient about it. We’ll continue to be supportive of the Chinese government and Chinese companies as they wish,” he said.
Nvidia's relationship with the chip market in China has been full of ups and downs. The US government had previously enforced strict licensing rules for semiconductor companies in April, including Nvidia, which sells AI chips to China. Affected by these strict regulations, Nvidia is estimated to have lost up to US$8 billion in revenue just from the second quarter of 2025, as it was unable to sell H20 chips there. Two months later, Nvidia even decided not to include China in its profit projection.
In July and August 2025, the Trump administration reversed its course and gave the green light for Nvidia chip sales. The White House announced that the company could obtain licenses to sell chips in China, but the US government would take 15 percent of the sales revenue. In the latest financial report, Nvidia has not yet succeeded in selling a single unit of its latest product to China under this trading scheme.
Editor’s Choice: Nvidia Gauges a Country's Development by Its GPU Count
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