Why Beijing is freezing Nvidia’s access to the Chinese market
The Nvidia logo appears on a smartphone reflecting the flags of China and the United States
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Beijing reportedly stopped the purchases of another AI chip from Nvidia and froze it completely from the market – a movement industry experts say the country’s confidence in domestic chipsets and the attempt to win trade leverage.
Just a few months ago, Jensen Huang announced that China announced that the US would allow the US to continue its sales of H20 graphic processing units for China and reverse the previous stop in its exports.
At that time, Huang announced the company’s new RTX Pro GPU for the Chinese market, adapted for AI smart factories and logistics.
However, Nvidia’s deying of NVIDIA, who was waiting for the regulators in China to examine the national security reviews, returned in August when it was reported that H20 began to stop purchases.
Now that NVIDIA has been expanded to the RTX Pro 6000D chip, the company has allowed Chinese customers to sell any products. report The Financial Times is on Wednesday.
This said that after a preliminary investigation of Chinese regulators on Monday, Nvidia violated the country’s anti -monopoly law, adding that they would continue their investigations.
While the definitive motive of China’s actions against Nvidia remains uncertain, technology and geopolitical analysts say that developments are more confident than China’s ability to make AI chips and use it as a leverage against the United States.
Another nvidia chips are falling apart
Experts characterized the movement as part of Beijing’s efforts to encourage Chinese AI companies to discover local alternatives, but they predicted that exports would ultimately be cleaned due to high demand from Chinese artificial intelligence players.
Meanwhile, some Chinese AI companies stated that they would order tens of thousands of RTX Pro 6000Ds, and according to FT’s reports, NVIDIA’s server suppliers and test and verification work until FT reports were requested to stop such activities.
However, the country’s organizers, the indigenous AI chip makers, and according to FT, the US company has reached the comparable performance for China’s products to conclude that they have reached the performance of the Nvidia chips.
However, the only challenge of China’s AI chips is not performance. Analysts claim that capacity is a major obstacle, and the domestic industry still cannot produce enough chips on a scale.
Reporting He argues that Beijing is more safe in this field, and that local chip producers are trying to double the total production of total AI processors of the country next year.
“All these recent actions show that China has more confidence in China’s domestic sectors than before,” Bernstein said, ” He said.
China’s chip progress
There are signs that China’s AI ecosystem is progressing.
Chinese technology giant Huawei claimed that on Thursday, the new AI calculation infrastructure would be “the most powerful in the world” by using in -company Ascend chips.
Research company Semianalys found that Huawei’s latest generation Cloudmatrix system could perform better than NVIDIA’s AI calculation system in some metrics. By obtaining the advantage of huawei Five times more chips interdependent.
Meanwhile, China AI Start Deepseek implied last month that the latest AI model would be compatible with the country’s “new generation” Homegrown AI chips. China’s Alibaba and Baidu reported He began to use internally designed chips to help train AI models and partially changed what was done by Nvidia.
Nevertheless, analysts are skeptical of China’s ability to reduce their dependence on Nvidia chips.
“In terms of the preparation of China’s domestic chip, I believe that it is misleading to propose that the country can advance the AI with only domestic alternatives and Nvidia’s systematic offers,” he said. He said.
Are you looking for leverage?
Experts acknowledge that China is more confident in Nvidia’s ability to resist Nvidia, while the country argues that the country can use access to its market as leverage in trade negotiations with the USA
“The movement is likely to have a tactic of negotiation as a part of a broader discussions, including other issues, including tariffs. He said.
The US stated that it could even allow it Nvidia chips to the Chinese market than the H20.
Under Joe Biden, export controls on advanced chips were increasingly bored to prevent China’s best access to American technology. Initially, after accelerating under the Trump administration, this trend is now reversing.
According to Rhodium Group Director Reva Goujon, Beijing, by rejecting the H20 and RTX Pro, may want to create the opportunity to negotiate access to more developed GPUs.
The authority is not a coincidence to come in the midst of China’s other leverage construction this week and referring to its recent times. Anti-dumping research To imports of certain analog chips from the USA
“Beijing has to create his own leverage while testing Trump’s processor.”
