[News] Chinese Regulators Reportedly Summon NVIDIA Over H20 Chip Backdoor Security Risks

Shortly after White House Economic Adviser Kevin Hassett hinted at NVIDIA’s H20 AI chip shipments to China, Chinese authorities unexpectedly demanded NVIDIA explain the security risks and possible backdoors in its H20 chips, according to Chinese media outlet ijiwei.

The report suggests that the Cyberspace Administration of China (CAC) summoned NVIDIA on July 31, 2025, asking the company to explain the security risks and potential backdoors in H20 sold in China and to submit relevant proof.

The news comes shortly after the U.S. approved NVIDIA’s H20 chip sales to China. Reuters reported that White House Economic Adviser Kevin Hassett said President Trump and his team greenlit the sales to keep China from overtaking the U.S. in the global chip race.

Two weeks ago, during NVIDIA CEO Jensen Huang’s visit in China, he announced the company had applied to the U.S. government to resume selling its H20 GPUs to China and was assured that licenses would be granted soon. With U.S. approval to restart H20 sales in China, Reuters disclosed that fueled by strong demand from Chinese buyers, the AI chip giant placed an additional 300,000-chip order with TSMC last week.

However, U.S. lawmakers have pushed for advanced chips exported from the U.S. to include “tracking and location” features, raising concerns from the Chinese government, according to ijiwei. The outlet also reports that NVIDIA’s chips already possess mature “tracking” and “remote shutdown” technologies.

Notably, in Trump’s AI Action Plan revealed earlier, the  administration proposed export controls to verify the location of advanced AI chips—a move welcomed by Congress. The recommendation, according to Reuters, is part of a broader AI blueprint aimed at expanding AI hardware and software exports to U.S. allies, while easing environmental regulations to fast-track new AI data center construction.

Read more

• [News] NVIDIA Reportedly Adds 300K H20 Orders on China Demand Surge — TSMC, Memory Makers in Focus
• [News] NVIDIA’s H20 Production Faces Challenges? Inventory Reportedly Holds Amid Full TSMC N4 Capacity

(Photo credit: NVIDIA)