La Derecha Diario The Chinese Communist government declares war on American chips
Xi Jinping's regime has informed its major technology companies not to use microprocessors from companies such as Nvidia
Chinese authorities have summoned major domestic technology companies -such as Tencent, ByteDance, and Baidu- to explain their purchases of Nvidia's H20 chip, citing security risks and alleging that the company is passing information to the U.S. government.
During meetings with business leaders, officials from Xi Jinping's regime asked why these companies were buying Nvidia chips instead of opting for domestic alternatives. Although no explicit orders were issued to stop purchases of the chip in question, it was strongly suggested to avoid its use.
However, other sources reported that ByteDance, Alibaba, and Tencent have received instructions from Chinese authorities to completely suspend acquisitions of Nvidia chips.
Panic grows within the communist regime over U.S. technology.
This pressure puts Nvidia's recently restored access to the Chinese market at risk, after the United States allowed the sale of the H20 chip in July following negotiations with the Biden administration.
Nvidia's presence in the Asian country accounted for approximately 13% of the company's total revenue, about 17 billion dollars, in its last fiscal year, which ended in January 2024.
For this reason, Nvidia publicly defended the H20, stating that it is not a military product nor is it designed for government infrastructure. However, alarmism from the Chinese regime persists. A few months ago, Nvidia representatives were summoned by state authorities to explain whether the H20 posed risks to the country's security.
Nvidia reaches agreement with Biden.
This alarmism becomes even more evident when considering that U.S. sanctions on advanced semiconductor manufacturing equipment, such as lithography machines, continue to hinder China's ability to produce high-performance chips on a large scale.
Meanwhile, it was reported that U.S. President Joe Biden could allow the sale in China of a reduced version of Nvidia's advanced Blackwell chip, despite fears in Washington that Beijing could use these technologies to strengthen its military capabilities.
In addition, the Biden administration recently confirmed an unprecedented agreement with Nvidia and AMD, under which both companies will deliver 15% of the revenue caused by certain sales in China to the U.S. government.
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