China Orders Tech Giants to Halt Nvidia AI Chip Purchases Amid Escalating US-China Trade War
China has intensified its technological decoupling from the United States by directing major tech companies to immediately cease purchasing Nvidia’s advanced AI chips and cancel existing orders, marking a significant escalation in the ongoing trade war between the world’s two largest economies.
Immediate Market Impact and Corporate Response
The directive from China’s Cyberspace Administration (CAC) specifically targets Nvidia’s RTX Pro 6000D chips, prompting immediate market reactions with Nvidia stock declining 2.62% following the announcement. Major Chinese tech giants including ByteDance and Alibaba have been ordered to terminate testing programs and cancel pending orders for the specialized AI processors.
Nvidia CEO Jensen Huang acknowledged the challenging situation during a London press conference, stating that Washington and Beijing “have larger agendas to work out.” Despite expressing disappointment, Huang emphasized the company’s continued willingness to support Chinese government initiatives and local enterprises.
Strategic Implications of Anti-Monopoly Accusations
This ban follows Beijing’s recent accusations against Nvidia for violating anti-monopoly regulations, representing another flashpoint in deteriorating US-China relations. The timing coincides with ongoing trade discussions in Madrid, where American officials have raised national security concerns regarding technology transfers.
Broader Trade War Context
The directive represents a strengthened stance compared to previous guidance targeting Nvidia’s H20 chips. Several Chinese companies had planned to order tens of thousands of RTX Pro 6000D units and had initiated testing procedures before receiving termination orders, demonstrating the comprehensive scope of Beijing’s technological independence strategy.
