Nvidia Faces Opposition in China: Internet Regulator Bans RTX Pro 6000D Purchases

Nvidia faces pushback in China as the country's internet regulator orders major tech companies to stop buying its RTX Pro 6000D. The move is seen as part of China's efforts to reduce its reliance on US technology and promote domestic alternatives.

Nvidia, a leading provider of AI chips, has faced a significant setback in China as the country's internet regulator ordered major tech companies to halt purchases of its RTX Pro 6000D. The move, seen as part of China's broader efforts to reduce its reliance on U.S. technology, underscores the escalating geopolitical tensions between the two nations.

The Cyberspace Administration of China (CAC) has instructed major tech firms, including ByteDance and Alibaba, to terminate testing and cancel orders for the RTX Pro 6000D. The order comes amidst ongoing trade negotiations between the U.S. and China, with the U.S. having recently blacklisted 23 Chinese firms Nvidia CEO Jansen Huang “disappointed” by China’s ban as billions are at stake^[1].

Nvidia's CEO, Jensen Huang, expressed his disappointment but maintained a conciliatory tone. He stated that while the company is "disappointed" by the ban, it will remain "patient" as governments navigate geopolitical frictions Nvidia CEO Jansen Huang “disappointed” by China’s ban as billions are at stake^[1]. The RTX Pro 6000D was specifically designed to comply with U.S. rules on advanced AI hardware bound for China, but the ban has effectively shut off a key growth avenue for the company.

The ban is a significant blow for Nvidia, which had been paying 15% of its Chinese revenues to the U.S. government under a recent agreement. China's move to promote domestic alternatives to U.S. technology is expected to accelerate, with firms like Alibaba and ByteDance now turning to home-grown suppliers Nvidia CEO Jansen Huang “disappointed” by China’s ban as billions are at stake^[1].

The broader impact may be a fragmentation of the global technology landscape, with separate supply chains dictated by political rather than commercial logic. Despite the recent developments, Nvidia's global influence remains intact, having crossed the $4 trillion valuation earlier this year Nvidia CEO Jansen Huang “disappointed” by China’s ban as billions are at stake^[1].

Nvidia's shares dropped more than 1% in pre-market trading following the announcement of the chip ban, reflecting the market's immediate reaction to the news. The company has pledged continued cooperation with relevant government agencies as they evaluate the impact of export controls on competition in the commercial markets China moves to shut the door on Nvidia with RTX 6000D ban^[2].

The move by the CAC is part of China's broader strategy to build a self-sufficient semiconductor ecosystem and reduce its reliance on foreign technology, especially from the U.S. While the immediate impact on Nvidia is significant, the long-term effect may be more about China's push for domestic technological independence China moves to shut the door on Nvidia with RTX 6000D ban^[2].