BEIJING — China has formally ordered its major technology firms, including ByteDance and Alibaba, to cancel existing orders for Nvidia’s RTX Pro 6000D AI chips and to immediately halt all testing of the devices, according to multiple reports including the Financial Times and Reuters. The directive, issued by the Cyberspace Administration of China (CAC), comes as Beijing intensifies its push toward independence in semiconductor manufacturing.

Chinese regulators had already raised similar concerns and restrictions earlier over Nvidia’s H20 chip, citing both national security issues and the need to cultivate domestic alternatives.

Nvidia’s Response and Market Fallout

In London, Nvidia CEO Jensen Huang expressed disappointment over the directive, saying he understood it was part of “larger agendas” between Washington and Beijing. He added that Nvidia would “continue to be supportive of the Chinese government and Chinese companies as they wish.”

Investors reacted swiftly: Nvidia’s shares dropped about 2.6% following the announcements, reflecting concerns over the loss of one of its major international markets.

Regulatory Pressure Amplifies Antimonopoly Scrutiny

Alongside the purchase ban, China has escalated its regulatory oversight of Nvidia. Authorities have accused the company of violating Chinese antitrust laws related to its 2020 acquisition of Mellanox Technologies. While the full scope of penalties remains unclear, the investigation signals China’s willingness to use antitrust rules to counter what it perceives as unfair dependence on foreign tech.

Beijing is also promoting its domestic AI chipmakers — including Huawei, Cambricon, and Alibaba’s T-Head unit — which officials say are now producing AI processors that match or approach the performance of Nvidia’s China-specific models. The government has further directed state-linked data center companies to use a higher percentage of domestically produced chips.

Implications for U.S.-China Trade and Tech Strategy

The ban comes at a moment of heightened tension between the world’s two largest economies. It follows recent trade talks in Madrid and London, where semiconductor policies and export controls have featured prominently. For Nvidia, the restrictions may mean shrinking access to the Chinese market just as Washington and Beijing negotiate over technology and trade rules.

China, for its part, has expressed willingness to maintain dialogue. A spokesperson from the Foreign Ministry, Lin Jian, said Beijing “has always opposed discriminatory practices against specific countries on economic, trade, scientific and technological issues.” However, he left open what negotiations or adjustments might come.

Pressure on Domestic Companies and Investor Sentiment

For domestic Chinese firms, the directive is both a warning and a clear signal: the state expects them to align with national strategy and reduce reliance on foreign technology. Some firms reportedly had been in advanced stages of testing with Nvidia’s server suppliers before being told to stop work.

Meanwhile, Nvidia is reportedly revising financial forecasts to account for reduced China revenue.  (zai)