Chinese authorities have ordered the country’s largest tech companies, including Libaba, ByteDance, and Tencent, to stop purchasing Nvidia GPUs. The order, issued by the state cybersecurity regulator and the Cyberspace Administration of China, also applies to the RTX Pro 6000D models, designed specifically for the Chinese market. Companies were ordered not only to suspend testing of new solutions but also to cancel existing orders.
Recall that in 2024, Nvidia generated approximately $17.1 billion in revenue from China, equivalent to 13% of the company’s total revenue, which amounted to approximately $130 billion.
This move is part of Beijing’s broader policy aimed at reducing dependence on foreign technology. While previously the ban only concerned restrictions on the use of individual models, such as the H20, it has now extended to the entire Nvidia range. Analysts say the decision demonstrates growing confidence in the Chinese government’s ability to replace American manufacturers.
The government and major market players emphasize that the country already has its own developments. Huawei, Cambricon, and several other companies are actively producing processors that, according to their developers, can compete with Nvidia products. Chinese media report that the performance of the latest locally produced chips is “comparable” to Nvidia solutions in a number of areas, including special versions adapted to US export restrictions.
The situation is dire for Nvidia: the Chinese market has traditionally generated a significant share of the company’s revenue and now risks losing access to the world’s largest AI customers. Following the initial news of Beijing’s decision, the company’s shares plummeted significantly.
For Chinese IT giants, the consequences are twofold. On the one hand, they will have to abandon proven solutions and rebuild their infrastructure to accommodate new domestic chips that are not yet fully developed. On the other hand, government policy will clearly be accompanied by subsidies and support, which will accelerate the transition and stimulate their semiconductor industry.
Experts believe that the long-term consequences of this measure could be serious not only for Nvidia, but for the entire global artificial intelligence industry. China could rapidly expand its domestic production capacity and create an alternative hub for GPU development and production, further fragmenting the global technology market.
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