Nvidia’s China Nightmare? H20 Chip Faces Backdoor Allegations in High-Stakes Trade Showdown

Chinese rise The heat on Nvidia (Nasdaq: Nvda) is not good. This week, the country’s best internet guard dog called NVIDIA representatives on serious security risks connected to NVIDIA, especially designed to meet US export rules. The state media did not punch. In a comment published on Friday, People’s Daily warned the potential chip back doors that trigger a nightmare and said infected semiconductors could not allow the digital infrastructure. Nvidia firmly responded: Cyber security is critical for us and added that their chips do not contain any remote access. Nevertheless, in today’s geopolitical climate, this assurance may not be enough.

Here, things become more complicated. Just a few weeks ago, the United States agreed to remove restrictions on H20 sales to China as part of a wider agreement, which is critical for everything from smartphones to fighter aircraft. Trade Secretary Howard Lutnick framed the H20 start after the bilateral talks in London as a significant breakthrough, and Treasury Secretary Scott Bessent Magnet problem was solved, he said. However, while Beijing is now put the H20 under the microscope, it is unclear whether Nvidia really gets the licenses to send the plugs. And if China decides that the H20 is not technically or politically mercenary, it can stop before sales start.

Meanwhile, Ceo Jensen Huang walks on a rope. Huang, a high -profile visit to Beijing, praised China’s AI momentum and national championships such as Deepseek, all pushed the idea that Nvidia would upload its surveillance backgrounds to its products. The suggestion called it not only wrong, but also a bad job. Nevertheless, the truth is that the H20, which is weaker than Nvidia’s flagship GPUs, is now facing a political test that can be more important than its features. Investors watching the USCHA Tech Standoff may want to pay attention to what will happen, because this chip turns into a geopolitical bargaining chip.

This article emerged first Gurufocus.