It seems like chipmaker Nvidia may be in trouble with the Chinese cybersecurity regulator.
The Cyberspace Administration of China wants Nvidia to explain the “backdoor security risks” associated with its H20 chips sold in China and submit relevant documents, it said Thursday.
The Cyberspace Administration of China (CAC) is the central authority responsible for regulating the country’s internet, cybersecurity, and online content. Established in 2011, it operates under the Chinese Communist Party’s Central Cyberspace Affairs Commission, highlighting its strategic role in national governance.
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The CAC enforces important laws such as the Cybersecurity Law and the Personal Information Protection Law, aiming to protect national security, data privacy, and public order. It closely monitors online platforms, regulates content, and oversees cross-border data flows to maintain control over China’s digital environment.
In a statement, an Nvidia spokesperson said, “Cybersecurity is critically important to us. Nvidia does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.”
In recent years, the CAC has expanded its role to include emerging technologies like artificial intelligence. It requires AI services to comply with “core socialist values” and subjects them to government approval before deployment. The agency also organizes the annual World Internet Conference, promoting China’s vision of internet governance on a global stage.
Through these efforts, the CAC seeks to shape both domestic and international digital policies, asserting China’s leadership in cyberspace management.
The CAC said it was concerned by a U.S. proposal for advanced chips sold abroad to be equipped with tracking and positioning functions.
The U.S. government lifted previous bans, allowing Nvidia to resume sales of its H20 AI chips in China. While these chips are not as advanced as Nvidia’s flagship H100 models, they remain highly valuable for artificial intelligence applications. Nvidia has quickly responded by placing a large order for these chips from Taiwan Semiconductor Manufacturing Company (TSMC), signaling a renewed commitment to the region.
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However, Nvidia’s re-entry into China has not been without challenges. The Cyberspace Administration of China raised concerns about potential security vulnerabilities in the H20 chips, alleging risks of backdoor access. Nvidia has denied these claims, affirming its dedication to cybersecurity. Additionally, reports have emerged that China’s military sought to acquire Nvidia chips for various applications, including AI-powered servers and robotics, heightening geopolitical sensitivities.
Despite these hurdles, Nvidia is actively engaging with Chinese customers and industry events, such as the 2025 Supply Chain Expo. The company is also developing a new AI chip, the B30, designed to comply with U.S. regulations, aiming to strengthen its competitive edge against domestic rivals like Huawei.
