China bans Nvidia’s RTX Pro 6000D for top firms, pushes local chips like Huawei’s Ascend. Nvidia dips, Chinese stocks rise. Signals deeper U.S.–China tech split.

On September 17, 2025, China’s Cyberspace Administration (CAC) issued a directive that caught the world’s attention. Major tech firms—including Alibaba and ByteDance—were told to stop buying Nvidia’s RTX Pro 6000D, cancel existing orders, and halt testing of the chip.

This isn’t a blanket ban on all Nvidia products, but it marks a decisive step in Beijing’s broader push to reduce reliance on American technology and strengthen its domestic AI ecosystem.

What Exactly Did China Do?

The directive zeroed in on the RTX Pro 6000D, a specialized AI chip designed by Nvidia to comply with U.S. export controls. This “China-only” model is a toned-down version of Nvidia’s flagship H100, created so it could legally be sold in the Chinese market.

The order builds on earlier regulatory warnings against another Nvidia chip, the H20, which was also engineered to fit under U.S. export limits. So far, no universal restrictions apply to all Nvidia chips, but the pattern shows Beijing tightening its stance.

The move primarily affects China’s largest tech players, not every startup or importer. The CAC hasn’t publicly announced penalties for non-compliance, but the message is clear: the government wants its leading firms to switch to homegrown hardware.

Why Is China Doing This?

The heart of the policy is technological self-reliance. Beijing is urging its companies to adopt chips from domestic players such as Huawei (Ascend series) and Cambricon (AI processors).

Huawei’s Ascend 910C is considered competitive with Nvidia’s export-restricted H20 in some inference tasks, though it still trails Nvidia’s H100 in raw training power, energy efficiency, and software support. Nvidia’s CUDA platform remains a global standard, giving it a strong edge in developer adoption.

This fits within the Made in China 2025 plan, a long-term strategy to reduce dependence on foreign suppliers in critical technologies like semiconductors.

How Did the Market React?

Markets responded quickly:

• Nvidia’s stock dipped around 1% in early trading, reflecting concern about losing sales in China, a market that accounts for a significant portion of its revenue.

• Some Chinese tech and semiconductor stocks rose as investors bet that local chipmakers would gain from the shift.

Nvidia’s CEO, Jensen Huang, acknowledged the setback, saying: “We operate within the rules set by governments. China’s focus is on its own ecosystem.” He described U.S.–China tech ties as “fragmented” and emphasized Nvidia’s efforts to expand in markets like Southeast Asia and Europe.

Why Does It Matter?

This move highlights deeper shifts in the global tech order:

• Nvidia’s Challenge: Losing access to Chinese buyers for certain chips could put pressure on growth, though Nvidia remains dominant globally.

• China’s Chip Push: Domestic firms like Huawei and Cambricon may gain contracts and subsidies, but they still face hurdles in scaling production and catching Nvidia’s software ecosystem.

• Fragmented Tech World: The U.S. and China are carving out parallel tech spheres, raising costs and slowing global interoperability.

U.S. officials, including Commerce Secretary Gina Raimondo, criticized the directive as “protectionist,” while Beijing framed it as a defensive response to U.S. export curbs.

What’s Next?

For now, the ban is narrow—focusing on Nvidia’s RTX Pro 6000D and major Chinese firms. But the scope could widen depending on U.S.–China trade dynamics or progress in China’s chip industry. Other U.S. chipmakers, such as AMD and Intel, may face scrutiny if domestic alternatives become more viable.

For Nvidia, the strategy is to diversify into markets like India, Japan, and the EU, where AI demand is surging. For China, the challenge is whether domestic chips can not only replace Nvidia’s restricted models but eventually compete with its global flagships.

The Bigger Picture

The CAC’s directive is less about punishing Nvidia and more about accelerating China’s path toward self-sufficiency. It reflects a new phase in the U.S.–China tech rivalry, where geopolitical lines are shaping innovation as much as engineering breakthroughs.

The global chip race is no longer just about performance—it’s about control, sovereignty, and who will power the next generation of AI.

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