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China reportedly discouraged purchase of NVIDIA AI chips due to 'insulting' Lutnick statements

Chinese regulators reportedly dissuaded local companies from purchasing NVIDIA's H20 chips, because they found certain statements by US commerce secretary Howard Lutnick "insulting."

Chinese regulators reportedly dissuaded local companies from purchasing NVIDIA's H20 chips, because they found certain statements by US commerce secretary Howard Lutnick "insulting." According to the Financial Times, the Cyberspace Administration of China (CAC), the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) teamed up to intensify their efforts to push the use of homegrown chips following Lutnick's remarks in an interview with CNBC. CAC issued an informal notice instructing China's biggest tech firms, such as ByteDance and Alibaba, to stop new orders for H20 chips until the government is done conducting a national security review.

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