China: Authorities check Nvidia AI chips for cybersecurity threats

Chinese authorities have stepped up control over the activities of foreign manufacturers of microchips, amid the ongoing technological confrontation with the United States. On July 31, representatives of the Chinese cyberspace regulator held an official meeting with the management of Nvidia, touching upon the issue of potential threats associated with the use of H20 artificial intelligence chips.

According to the regulator, the discussion concerned the likelihood of hidden risks, including the possibility of transmitting user data and tracking mechanisms that can be built into the chip architecture. Increased attention to this topic is caused by recent initiatives of US lawmakers seeking the introduction of geo-positioning and control functions in exported AI chips, which, in their opinion, should limit the use of advanced technologies in countries with a high level of geopolitical sensitivity.

The development of the Nvidia H20 chip was focused specifically on the Chinese market. This happened after the US imposed restrictions on the export of advanced AI chips to China at the end of 2023. H20 has become an adapted product that meets the new requirements of American regulation. However, the chip's entry into the market was accompanied by a number of delays and political obstacles due to the changing international environment.

In July 2025, the US authorities lifted the previously imposed ban on the supply of H20 chips to China. According to Kevin Hassett, an economic adviser to the White House, the decision was made based on the interests of preserving US competitiveness in the global chip market and preventing China's technological dominance in this sector.

The situation reflects the growing distrust between key players in the field of AI and microelectronics. The issue of cybersecurity, personal data protection and control over the spread of advanced technologies is becoming an increasingly high priority for both China and the United States. For Nvidia, one of the leading AI chip companies, the need to meet the requirements of two opposing regulatory systems at once requires flexibility, precision, and strategic foresight.