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China Probes NVIDIA H20 Chips for Security Risks

China Probes NVIDIA H20 Chips for Security Risks
31 July 2025
Technology

China Summons Nvidia Executives Over H20 Chip Security Concerns

Chinese authorities have summoned executives from Nvidia amidst allegations concerning security risks and possible backdoor vulnerabilities found within the company's H20 artificial intelligence chips. This move signals a renewed scrutiny of foreign technology in China, especially in the wake of ongoing U.S.-China tensions over advanced semiconductor access.

The Cyber Space Administration of the country's chief Internet regulator, China (CAC), has officially requested that NVIDIA offer a detailed explanation and supporting documents related to alleged security weaknesses in their H20 chips sold in China. Investigation focuses on potential risks related to unauthorized access, monitoring, location-tracking functions, and remote shutdown capabilities, both in the United States and China cybersecurity experts.

Nvidia Required to Address Backdoor Vulnerabilities

The CAC’s summons comes only weeks after the United States eased restrictions on Nvidia’s chip sales to China, allowing the H20 a model specifically created for the Chinese market under U.S. export control rules to enter the country for commercial use. Concerns were amplified after U.S. lawmakers called for stricter oversight on exported AI chips, suggesting that chips sent abroad should carry security features enabling location verification and remote intervention.

Chinese regulators contend that such functionalities could potentially jeopardize national security by exposing user data and critical infrastructure to foreign interference. According to official statements, Nvidia must now submit technical evidence and clarifications under China’s Cybersecurity Law, Data Security Law, and Personal Information Protection Law.

Broader Implications for the Global Chip Industry

This incident reflects the escalating regulatory environment facing international companies dealing in critical technology sectors. As geopolitical rivalries intensify, chipmakers like Nvidia are required to navigate complex export controls while balancing demands from both U.S. authorities and Chinese regulators. Despite the resumption of H20 chip sales, Chinese agencies remain vigilant for any signs of technological backdoors or compliance violations.

At this time, Nvidia has not provided an official public response regarding the investigation. The probe and its outcomes are expected to have lasting repercussions not only for Nvidia’s business operations in China but also for the broader trajectory of U.S.-China technology collaborations.