Nvidia’s H20 chips, designed specifically for China, have been labeled unsafe and environmentally unfriendly by the country’s state media. Despite Nvidia clarifying that its products don’t have a “backdoor” or other security concerns, the company continues to receive criticism and scrutiny from defense-sensitive countries. China’s state media criticizes Nvidia’s H20 chips A Chinese state media-affiliated outlet has sharply criticized Nvidia’s H20 artificial intelligence chips, labeling them unsafe, technologically unimpressive, and not environmentally friendly. In an article posted Sunday on WeChat, Yuyuan Tantian, a social media account affiliated with the state broadcaster CCTV, claimed the H20 chips pose security risks, including the possibility of “remote shutdown” through a hardware “backdoor.” Prior to the latest post, China’s cyberspace regulator and People’s Daily, another influential state media outlet, also raised concerns and criticisms. “When a type of chip is neither environmentally friendly, nor advanced, nor safe, as consumers, we certainly have the option not to buy it,” the Yuyuan Tantian article stated . Nvidia has repeatedly denied that its products have backdoors or any similar remote access or hidden control mechanisms. The American chipmaking giant designed the H20 chips specifically for Chinese customers in response to U.S. restrictions on exporting advanced AI chips imposed in late 2023. The Trump administration banned sales of the H20 chips in April 2025 as trade tensions worsened, but it reversed that decision in July. On July 31, China’s Cyberspace Administration announced it had summoned Nvidia to discuss potential backdoor security risks. The administration pressed Nvidia to clarify whether or not such vulnerabilities existed. Soon after, the People’s Daily urged Nvidia to provide “convincing security proofs” to restore market confidence and address Chinese users’ concerns. Stakeholders make coordinated push to lift chip export controls According to reports earlier today, China wants the United States to relax restrictions on high-bandwidth memory (HBM) chips. These chips are key components for data-intensive AI applications, and the restrictions would be relaxed as part of a potential trade deal ahead of a possible summit between U.S. President Donald Trump and Chinese President Xi Jinping. Unnamed sources familiar with the discussions told FT that Chinese officials have conveyed this request to stakeholders in Washington. The reports claim that Beijing is concerned that U.S. restrictions are hindering Chinese technology companies, including Huawei, from producing their own AI chips. The White House, the U.S. State Department, and China’s Ministry of Foreign Affairs did not immediately respond to requests for comment on the report. Successive U.S. administrations have maintained a strict hold on the export of advanced chips to China for national security and strategic competition concerns. These measures aim to slow Beijing’s progress in AI and defense technology development, while also limiting China’s access to cutting-edge semiconductor manufacturing capabilities. While these restrictions have constrained U.S. chipmakers from fully meeting the strong demand in China, despite it being one of the world’s largest semiconductor markets, the country remains a major source of revenue for American semiconductor companies. Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
