China orders companies to stop buying Nvidia chips.
China’s cybersecurity regulator has ordered a halt to purchases of Nvidia RTX Pro 6000D graphics cards, which were planned to be used not only for workstations but also for AI-related tasks. Alibaba Group is among the companies receiving the order.
According to sources at the Financial Times, the agency ordered the halting of testing of these chips and the cancellation of existing orders. Previously, many companies had planned to stockpile tens of thousands of Nvidia processors for future use, fearing new US restrictions.
Amid the news, Nvidia shares in the US fell 2.7%, while AMD shares fell almost 1%.
Beijing’s response and Nvidia’s reaction
This move is part of China’s efforts to reduce its dependence on American technology. Authorities are increasing support for local manufacturers while simultaneously protesting US export restrictions, which deprive companies of access to the most advanced chips.
Nvidia CEO Jensen Huang expressed disappointment with Beijing’s decision, but acknowledged, “We can only operate where we’re allowed.”
Pressure on American Companies
In recent months, China has increased pressure on foreign manufacturers. Nvidia has already been subject to antitrust proceedings over its 2020 acquisition of Mellanox. Furthermore, authorities have announced an anti-dumping investigation into chips from American companies, including Texas Instruments.
Developing In-House Solutions
Meanwhile, Chinese players are actively developing domestic alternatives. Huawei is making AI chips for the domestic market, startups like Cambricon are making progress, and Alibaba and Baidu are bringing their developments to market. Alibaba already has a major client—one of the country’s leading mobile operators—which has begun using its T-Head processors.
Experts note that Beijing intends to build digital independence and is prepared to “tighten its belt now to avoid dependence on technologies that could be restricted at any time.”
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