Beijing Quietly Discourages Use of Nvidia's H20 Chips Despite US Approval

Despite the Trump administration lifting the ban on Nvidia's H20 AI chips to China, Beijing is quietly urging companies, especially government entities, to avoid using them, complicating Nvidia's return to the Chinese market. While not an outright ban, Chinese authorities have sent notices discouraging the use of H20s in government or national security-related work. Although Chinese companies still desire these chips for their AI capabilities, Beijing's move aims to boost domestic chip development and addresses security concerns. This also impacts AMD's AI accelerators, with Chinese chipmaker Cambricon Technologies' stock surging. The situation highlights the complexities of the US-China tech war and the contradictions surrounding the US government's decision to allow H20 exports.