{"id":162413,"date":"2025-08-12T20:50:11","date_gmt":"2025-08-12T20:50:11","guid":{"rendered":"https:\/\/teknomers.com\/en\/the-agreement-with-the-us-appeared-to-open-opportunities-for-nvidia-in-china-now-however-it-is-the-asian-giant-that-is-starting-to-shut-the-door\/"},"modified":"2025-08-12T20:50:13","modified_gmt":"2025-08-12T20:50:13","slug":"the-agreement-with-the-us-appeared-to-open-opportunities-for-nvidia-in-china-now-however-it-is-the-asian-giant-that-is-starting-to-shut-the-door","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/the-agreement-with-the-us-appeared-to-open-opportunities-for-nvidia-in-china-now-however-it-is-the-asian-giant-that-is-starting-to-shut-the-door\/","title":{"rendered":"The agreement with the US appeared to open opportunities for Nvidia in China. Now, however, it is the Asian giant that is starting to shut the door."},"content":{"rendered":"\n

The agreement between Nvidia and Washington allowed the company to \u00a0resume sales\u00a0 of its H20 chip in China, marking a significant shift after months of restrictions. However, the \u00a0Chinese authorities\u00a0 have started to intervene, asking major tech players like \u00a0Alibaba, Bytedance,\u00a0 and \u00a0Tencent\u00a0 to explain why they are purchasing the H20, rather than opting for domestic alternatives. This action signifies a rethinking of buying behaviors, coinciding with Beijing’s push for \u00a0technological self-sufficiency\u00a0.<\/p>\n

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Nvidia conceived the H20 chip as a response to export \u00a0limitations\u00a0 set by the U.S. at the end of 2023. Initially celebrated, the H20 faced another blockade earlier this year due to renewed restrictions from Washington. Following negotiations, particularly under the Trump administration\u2019s guidance, Nvidia was granted a \u00a0license to resume sales\u00a0 in July 2025, conditional upon the company transferring 15% of revenue generated from some advanced chip sales back to China. This reengagement, however, has ignited debate in the U.S. regarding its potential impact on China’s tech capabilities.<\/p>\n

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A Historical Agreement That Now Faces Resistance<\/h2>\n

Chinese authorities, including the \u00a0Ministry of Industry and Information Technology\u00a0 and the \u00a0Cyberspace Administration of China\u00a0, have held discussions with companies like Alibaba, Bytedance, Tencent, and \u00a0Baidu\u00a0. They have queried why these firms are not considering \u00a0national alternatives\u00a0 to the H20, expressing explicit discontent towards its use in sensitive areas such as government infrastructure and cybersecurity. Questions regarding the \u00a0data-sharing\u00a0 practices between Nvidia and Washington have also arisen, contributing to a climate of uncertainty among companies regarding their future orders for the H20.<\/p>\n

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The Chinese internet regulator further expressed concerns that the H20 chip might pose risks to user data due to possible \u201c\u00a0backdoors\u00a0\u201d and functionalities like remote shutdowns or location tracking. Nvidia has consistently denied these allegations, reiterating that the H20 is not intended for military or governmental use.<\/p>\n

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Since the initial restrictions on the H20, domestic manufacturers like \u00a0Huawei\u00a0 and \u00a0Cambricon\u00a0 have gained increased prominence in the chip market. Beijing\u2019s emphasis on \u00a0technological independence\u00a0 reinforces the government’s active encouragement for major tech platforms to choose local suppliers. The existing lack of access to advanced manufacturing equipment, especially top-tier lithography technology, remains a barrier, yet the demand for domestic chips is rising due to political backing and a desire to reduce reliance on foreign technology.<\/p>\n

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\"Nvidia\n <\/div>\n<\/div>\n

However, giants like Tencent, Alibaba, and Bytedance still prefer \u00a0Nvidia’s GPUs\u00a0 due to their superior performance and the functionality of \u00a0CUDA\u00a0, Nvidia’s parallel programming platform. This reliance makes transitioning to alternative solutions, such as those offered by local manufacturers, technically challenging. Experts, including Li Guojie from the Chinese Academy of Sciences, argue that China requires proprietary solutions that can compete with or surpass CUDA in order to achieve true \u00a0self-sufficiency\u00a0.<\/p>\n

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Despite the advantages, major Chinese firms still favor Nvidia GPUs.<\/p>\n<\/p><\/div>\n<\/div>\n

A recent analysis from Bernstein estimates that Nvidia’s market share in China might decrease from \u00a066%\u00a0 in 2024 to \u00a055%\u00a0 this year. Concurrently, political figures like Trump have hinted at potentially allowing a \u00a0limited version\u00a0 of Nvidia\u2019s Blackwell-based chips, which would add to the uncertainties surrounding the company\u2019s future in this critical market. In 2022, Nvidia generated \u00a0$17 billion\u00a0 in sales from China, accounting for \u00a013%\u00a0 of its total revenue.<\/p>\n

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\n \"Huawei's\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n

What began as a breakthrough for Nvidia in July has morphed into a landscape fraught with uncertainty. The increasing pressure from Beijing, alongside a growing preference for \u00a0national manufacturers\u00a0, recalibrates Nvidia’s prospects in a strategically vital market. The result will not only shape the company’s future in China but also influence how the two global powers navigate the complex intersections of \u00a0artificial intelligence, politics, and trade\u00a0 going forward.<\/p>\n

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Images | Nvidia<\/a><\/p>\n

In Xataka | China’s first avant-garde lithography machine is not the biggest US problem. They will be the other two that are on their way.<\/p>\n

In Xataka | China is an essential market for Nvidia. Little by little it is becoming something else: a nightmare.<\/p>\n


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General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The agreement between Nvidia and Washington allowed the company to \u00a0resume sales\u00a0 of its H20 chip in China, marking a significant shift after months of restrictions. However, the \u00a0Chinese authorities\u00a0 have started to intervene, asking major tech players like \u00a0Alibaba, Bytedance,\u00a0 and \u00a0Tencent\u00a0 to explain why they are purchasing the H20, rather than opting for […]<\/p>\n","protected":false},"author":1,"featured_media":162414,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36399],"tags":[10,6514,29,2397,521,117,20230,1614,3121,3890,6028],"class_list":["post-162413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-agreement","tag-appeared","tag-asian","tag-china","tag-door","tag-giant","tag-nvidia","tag-open","tag-opportunities","tag-shut","tag-starting"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/162413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=162413"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/162413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/162414"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=162413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=162413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=162413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}