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U.S. Reopens Nvidia H20 Chip Exports as China Probes Backdoor Risks

Beijing’s regulators have demanded documentation for suspected backdoors in foreign AI components.

US President Donald Trump shakes hand with China's President Xi Jinping at the end of a press conference at the Great Hall of the People in Beijing on November 9, 2017.

Overview

  • The U.S. government lifted its ban on Nvidia’s H20 AI chips in mid-July and is now issuing export licences for shipments to China.
  • China’s Cyberspace Administration summoned Nvidia officials on July 31 to demand explanations and supporting data over alleged backdoors in the H20 chips.
  • U.S. AI experts report that the H20 chips include tracking, location, and remote-shutdown features capable of posing strategic security risks.
  • Over $1 billion worth of Nvidia’s restricted chips were smuggled into China after the initial ban, highlighting challenges in enforcement.
  • Analysts warn that restoring legal exports could spur China to accelerate its domestic semiconductor development through firms such as Huawei and Biren Technology.