China Flags Security, Performance Concerns Over NVIDIA’s H20 Chips

Concerns over NVIDIA’s H20 chips may further strain US-China relations in the tech sector.

Beijing’s state media-linked channels have raised security and performance concerns about NVIDIA’s H20 artificial intelligence chips, developed for the Chinese market. The warnings follow scrutiny from China’s cyberspace regulator, which recently questioned the US chipmaker over potential backdoor access in its products.

According to an article from Yuyuan Tantian, affiliated with state broadcaster CCTV, the H20 chips are alleged to be technologically underwhelming, lacking environmental efficiency, and posing potential security risks. The commentary suggested that hardware vulnerabilities could enable functions such as remote shutdown, raising fears of unauthorised control.

The H20 series was designed in response to US export restrictions on advanced AI chips to China, introduced in late 2023. The administration of US President Donald Trump initially banned their sales in April 2025 amid escalating trade tensions but reversed the ban in July. 

Shortly after, China’s cyberspace watchdog summoned NVIDIA on July 31, seeking clarification on whether the chips contained any security backdoors, a hidden mechanism allowing bypass of standard authentication or security measures.

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NVIDIA has denied that its products contain any such vulnerabilities, stating that its chips have no mechanisms enabling remote access or control. Despite these assurances, criticism from Chinese state media has persisted. 

The growing scrutiny underscores the tension between technological trade and national security concerns, as AI chip demand in China remains high. Industry analysts say the dispute could further complicate US-China tech relations, already strained by regulatory restrictions, supply chain pressures, and geopolitical rivalry in the semiconductor sector.

NVIDIA has not yet issued a formal statement in response to the latest round of allegations.

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Vidushi Saxena
Vidushi Saxena
Vidushi Saxena is a Journalist at EFY, with a strong interest in news reporting, in-depth research, and developments shaping the business and technology landscape.

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