China reportedly bans foreign AI chips from state-run data centers
Reuters reports that the Chinese government has issued guidelines requiring new state-funded data centers to use only domestically produced AI chips. Sources told Reuters that Chinese regulators are requiring data centers that are less than 30 percent complete to remove all foreign-made chips they have installed.
Exclusive: China bans foreign AI chips from state-funded data centres, sources say | Reuters
China bans foreign AI chips from state-funded data centers, report claims — crackdown would include removing Nvidia, AMD, and Intel chips from builds in early stages | Tom's Hardware
https://www.tomshardware.com/tech-industry/semiconductors/china-bans-foreign-ai-chips-from-state-funded-data-centers
A Reuters review of government bidding found that China's AI data center projects have received more than $100 billion in government funding since 2021. Most Chinese data centers receive some form of government funding to support their construction, but it is currently unclear how many projects will be subject to the new guidance.
One of the sources said that at the request of the Chinese government, several projects, including some facilities that were set to use Nvidia chips, have already been halted before construction even began. The projects were being developed by private technology companies with government funding, but have been put on hold, the source said.
The request appears to apply not only to NVIDIA's China-specific AI chip, the H20, but also to its high-end H200 and B200 models. Despite being restricted by US export regulations, these products have been entering Chinese data centers through unofficial channels. The distribution of such gray market parts will be subject to stricter internal scrutiny, potentially affecting training clusters already under construction.
Beijing has long resented U.S. export controls aimed at stifling China's technological progress and has taken a series of steps, including retaliatory measures, to wean itself off American technology.
China is investigating Nvidia's 2020 acquisition of computer network supplier Mellanox for $7 billion (approximately 1.1 trillion yen) on suspicion of antitrust violations, and in September 2025 announced the results of a preliminary investigation that found that Nvidia had violated antitrust laws.
China claims NVIDIA violated antitrust laws - GIGAZINE
Meanwhile, the United States has significantly restricted exports of NVIDIA's high-performance AI chips, including the H100, to China, citing 'national security concerns.' After meeting with Chinese President Xi Jinping, President Donald Trump said, 'The United States will allow NVIDIA to do business with China, but not with cutting-edge chips.'
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