Chinese regulators have announced the discovery of a “backdoor” in Nvidia’s H20 artificial intelligence chips, which were recently approved for export from the United States to the Chinese market. According to officials in Beijing, these backdoors could allow for the tracking of device geolocation and even remote shutdowns.
This is reported by Finway
China’s Position and Nvidia’s Response
The Cyberspace Administration of China (CAC) has summoned Nvidia to court, demanding explanations and documentation regarding potential security threats. This situation poses significant risks to Nvidia’s plans to re-enter the Chinese market. The H20 chip was developed as an alternative to U.S. export restrictions and was positioned as a key product for China. Following the easing of the supply ban, Nvidia CEO Jensen Huang personally visited Beijing to assure local partners of the product’s reliability and to present the new Blackwell GPU line that complies with U.S. regulations.
“Chinese regulators stated that backdoors have been found in Nvidia’s H20 AI chips, the supply of which was recently approved by the U.S. They allegedly enable tracking of locations and remote shutdowns of devices.”
So far, Chinese officials have not provided compelling evidence for their accusations. Experts, including China technology specialist Paul Triolo, express skepticism as the regulator has not disclosed any analytical sources or results from its own tests. Nvidia is currently refraining from making official comments.
China’s Domestic Market and International Context
In light of the situation with Nvidia, Beijing is intensifying its import substitution policy in the high-tech sector. Well-known companies are being advised to increase their purchases of domestic chips, which creates additional advantages for manufacturers like Huawei, Biren, and Cambricon, who receive government support to develop the national artificial intelligence ecosystem.
Meanwhile, in the U.S., lawmakers are discussing a new bill that could require Nvidia and other manufacturers to integrate tracking systems into chips exported abroad. Opponents of the initiative believe that such changes could accelerate the development of Chinese AI and pose threats to U.S. national security.
Experts note that the situation surrounding the H20 remains uncertain. Chip production has resumed, but it will take about nine months before they are delivered to end customers. In both countries— the U.S. and China— there are influential forces opposing such agreements: in the U.S., it’s a matter of security, while in China, it’s the pursuit of technological independence.