China’s cybersecurity regulator (CAC) has summoned Nvidia for talks on the H20 chip, raising concerns about its security. It is a new chapter in the technology rivalry that puts the US giant in a complicated position. Beijing is demanding explanations and documentation from the company about potential security vulnerabilities and so-called backdoors.
The situation is complex in that the H20 model is not a standard product. It was developed by Nvidia specifically for the Chinese market as a response to restrictive US export sanctions. Washington, concerned about China’s military development, blocked the sale of the most powerful AI chips such as the H100. As a result, the H20 is a deliberately downgraded unit, designed to meet US export standards while satisfying demand from Chinese technology companies.
The Chinese regulator’s decision can be seen in two ways. On the one hand, it may stem from genuine concerns about data security and user privacy. On the other, it is likely to be part of a broader strategy by Beijing to increase pressure on Western technology companies and promote domestic alternatives as part of a drive towards technological self-sufficiency.
