China Tightens Customs Scrutiny on Nvidia Chips Amid Tech Rivalry

China has escalated customs inspections on semiconductor imports, specifically targeting Nvidia's China-specific AI chips. The crackdown aligns with Beijing's broader strategy to reduce reliance on U.S. technology and assert dominance in the AI sector. Nvidia's H20 and RTX Pro 6000D processors, already restricted by U.S. export bans, face heightened scrutiny as regulators pressure local firms to halt orders.

The move underscores the geopolitical tightrope Nvidia must walk—balancing compliance with Washington's export controls while preserving access to a critical market. The Cyberspace Administration of China has reportedly directed major tech companies to cancel Nvidia product testing, signaling a hardening stance. Semiconductor supply chains are now a frontline in the U.S.-China tech rivalry, with Ripple effects across global AI development.