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Beijing has introduced energy efficiency rules to use advanced chips that would prevent Chinese companies from buying the best-selling NVIDIA processors in the country if they are strictly implemented.
The National Development and Reform Commission, Chinese main planner, advises Chinese groups to use chips that meet strict requirements in new data centers and spread existing facilities, according to documents they have examined and analyzed in the Financial Times.
NvidiaWith the H20 chip-wort powerful of its graphic handling units of the top range, but it is adapted to fulfill the Washington export control-it fails to satisfy the new rules of the Commission, according to the documents.
For several months, the Chinese regulator quietly discouraged the technological giants in the country such as Alibaba, Bytten and Tencent from the purchase of H20 chips, they said two people who know about the matter.
However, the rules were not implemented strictly and still need to redeem China The sale of H20 chips, which remain in strong demand, has added people.
But the implications are great if the Commission decides to prohibit stricter, creating a threat to Nvidia’s business of $ 17 billion a year in the country.
While China is in a hurry to build more data centers, the American chip manufacturer risks a loss of commands for domestic rivals like Huawei, whose offer is better aligned with the green Beijing plan.
In an effort to make smooth tensions, Nvidia tries to organize a meeting in the coming months between her senior executives and the President of the Zheng Sharni Commission, he is said in one person familiar with plans.
NDRC limitations, which were introduced last year, but have not been reported earlier, followed by growing tensions of trade in the US-I-China, as nations seek to race with each other in the development of advanced artificial intelligence.
Beijing has pushed local companies to rely less on foreign groups such as Nvidia, which makes graphic processing units key to developing the AI model.
Since such Ivica applies only to the construction of data centers, some companies work around them by alternating old chips for H20 in their existing data centers, people said to be introduced to this issue.
Failure to launch inspections on the spot and subsequent fines, which is a question that most Chinese companies want to avoid, said one of the people.
In order to deal with the threat, Nvidia has prepared a solution to adjust H20 chips to meet NDRC requests, one of the people said. But such technical changes would reduce the efficiency of the chip and hurt its competitiveness in the Chinese market.
The attitude of the Commission sends a trembling signal on the holding of Beijing towards Nvidia, the American Chip Titan, which started with technological rivalry with high roles between Washington and Beijing.
The H20 chip is NVIDIA’s leading offer and has been approved for sale after US export control in October 2023.
These curbs of Nvidia from the delivery of his most advanced chips in China for fear of enhancing the military skill of the earth.
Technical power plants from Alibaba to Tencent this year after H20 chips increased their commands for H20 chips after Starting Deepseek From his effective reasoning model he brought to Ai flourishing in the country, said one of the people who know about the matter.
The command of the command also comes from expectations from further suppression on Nvidia’s sale of chip in China. Bloomberg reported in January that Washington explores additional restrictions that could cover the H20 chip.
Nvidia is increasingly caught in the intersection of Chinese regulators. State Administration for Market Regulation launched the antitrust probe In December, digging out whether Nvidia withdrew from the sale of chips to Chinese clients, even before the US banning exported at the end of 2022, a person with knowledge of the probe said.
China is the fourth NVIDIA largest market, with a revenue of $ 17.1 billion, which made up 13 percent of the total sales, according to an annual report for the fiscal year 2025.
“Our products provide excellent energy efficiency and value in every market we serve,” Nvidia said in a statement. “As the technology moves quickly, the export control policy should be adjusted to allow us to offer companies to offer the most effective products, while achieving the goals of national administration safety.”
Intel -OVs HL328 and HL388 Cyples also do not harmonize with NDRC environmental needs, although the potential influence is likely to be small because of their limited sales in China, according to people who know about measures.
NDRC did not answer the commentary request.
