China steps up customs checks on US chips, especially Nvidia’s H20 and RTX Pro 600D
Crackdown linked to Beijing’s push for semiconductor self-reliance
Follows reports of $1 billion worth of smuggled AI chips entering China
China has intensified enforcement of its import curbs on US chips, including Nvidia’s AI processors, according to a report published by The Financial Times. This came as Beijing’s efforts to boost domestic semiconductor manufacturing.
The Chinese government has sent custom officials to key ports for conducting strict checks on semiconductor shipments. The report stated that inspections, specifically, targeted Nvidia’s H20 and RTX Pro 600D, which have been designed to adhere to US exports controls, initially.
The inspections now cover all high-end semiconductor products that violate US export restrictions. It is pertinent to note that access to Nvidia’s cutting-edge chips has remained a major flashpoint in the ongoing tech tensions between Washington and Beijing.
Previously, FT has also reported that AI chips worth at least $1 billion from Nvidia were smuggled into China and sold over a three-month period starting in May.
Reuters also noted last month that Nvidia introduced a new AI processor, the RTX6000D, specifically designed for China, though demand has remained subdued, with several leading tech companies choosing not to place orders.
In August, US President Donald Trump flagged the possibility of allowing Nvidia to sell more advanced chips in China. Chinese authorities had earlier accused Nvidia of violating the anti-monopoly law.
They have even ordered the top tech companies to halt purchases of Nvidia’s AI chips and cancel existing orders, FT reported in September.
Even Nvidia had also instructed some suppliers to pause production of its H20 AI accelerator amid a mounting regulatory and geopolitical pushback that is reshaping the chipmaker’s supply chain. This was reported in August 2025.
Nvidia notified Arizona-based Amkor Technology, which handles advanced packaging, and alerted Samsung Electronics, a supplier of high-bandwidth memory used in the H20, that H20-related production should be suspended.
Reports also said Foxconn was asked to stop work on the model and that Nvidia plans to work through existing inventory before placing new orders.
Chinese regulators recently summoned major domestic technology companies, including Tencent and ByteDance, to question H20 purchases and voice concerns about information security risks, creating reputational pressure on buyers and suppliers in China. State media and cyberspace authorities have raised similar alarms in the last few months.
