China Steps up Checks on Nvidia AI Chips at Major Ports, FT Says

China has cranked up its enforcement of import restrictions on computer chips from the United States, including artificial intelligence processors made by Nvidia, according to the Financial Times.

The move comes as the country’s leaders shift their focus to promoting semiconductors made at home. Both countries also appear to be stepping up negotiating positions on trade issues as a summit looms between the two presidents in South Korea later this month, analysts have said.

Chinese customs officials were dispatched to key ports to conduct strict checks on semiconductor shipments, the FT said on Friday, citing unidentified sources.

ALSO SEE: China Curbs Rare Earth Exports to Defence Firms, Chipmakers

China customs officials did not immediately respond to a Reuters’ request for comment, while an Nvidia spokesperson declined to comment on the report.

Key point of friction

The newspaper said the inspections targeted Nvidia’s H20 and RTX Pro 6000D, which were initially designed to adhere to US export controls.

But the checks have been extended to include all advanced semiconductor products that breach US export curbs, the report said.

Reuters could not immediately verify the report.

The extent to which China has access to Nvidia’s world-leading chips has been a key point of friction between the US and China.

The Financial Times newspaper had previously reported that at least $1 billion worth of Nvidia’s top AI chips were smuggled and sold in China in the three months from May. Reuters could not independently verify the report.

Nvidia has a new AI chip ‘RTX6000D’ tailored for the Chinese market, Reuters reported last month, but it has seen only lukewarm demand with some major tech firms opting not to place orders.

In August, US President Donald Trump flagged the possibility of allowing Nvidia to sell more advanced chips in China.

Authorities in China have previously accused Nvidia of violating its anti-monopoly law. They have also ordered top tech firms to halt purchases of Nvidia’s AI chips and cancel existing orders, the FT reported in September.

Despite advances by Huawei and other Chinese chip firms in recent years, people involved in engineering operations at Chinese tech firms say Nvidia’s chips perform better.