According to PandoraTech News, the Cyberspace Administration of China (CAC) formally summoned Nvidia on July 31, 2025, demanding an explanation regarding the "security vulnerability backdoor" issue in its H20 series high-performance AI chips sold in China, and requesting the submission of relevant technical documents and risk assessment reports.

The background to this meeting is that US congressmen previously pushed for the export of AI chips to include "location tracking" and "remote shutdown" functions, which has drawn serious attention from China. The Cyberspace Administration of China pointed out that experts have discovered that Nvidia chips possess the technological basis for these functions, potentially threatening national network and data security.

This regulatory action was carried out in accordance with core laws such as the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law, reflecting the Chinese government's increasing emphasis on "autonomy and controllability" and "supply chain credibility" in the field of generative AI infrastructure.

This incident not only affects Nvidia's chip sales prospects in China, but may also lead to policy support for domestic alternatives in China (such as Huawei Ascend and Cambricon).

🧠 Analysis

This meeting marks a new phase in China's regulation of AI at the national security level. If Western chip manufacturers are required to embed remote functions that can be "disabled," it will undoubtedly exacerbate the trust rift between China and the US, and will also push China to accelerate the development of domestic chip alternatives and reduce its reliance on overseas AI computing power.

For Nvidia, failing to effectively address regulatory concerns in China could result in a strategic setback in its Chinese market.

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