Electronics

China against Nvidia's Ai chips after Lutnick's 'offensive' statements

According to Ft, Beijing's tightening of the H20 processor was prompted by the US Commerce Secretary's words last July

21 August 2025

1' min read

Beijing's decision to restrict sales of China's Nvidia artificial intelligence processor was motivated by US Commerce Secretary Howard Lutnick's statements on chip exports that officials deemed 'offensive'.

This was revealed by Ft, according to which a group of Chinese regulators has mobilised in an attempt to dissuade domestic technology companies from acquiring the H20, a low-power processor widely used for artificial intelligence in China.

According to the Financial Times' reconstruction, the Chinese Cyberspace Administration (CAC), the National Development and Reform Commission (Ndrc) and the Ministry of Industry and Information Technology acted in response to statements made by Lutnick last July.

'We don't sell them our best products, second-rate or third-rate,' said Lutnick, the day after the Trump administration lifted the export controls, implemented in April, on H20 sales.

"The idea is to sell the Chinese enough to make their developers dependent on American technology," he explained.

Some senior Chinese executives found these comments 'offensive', prompting policymakers to look for ways to prevent Chinese technology groups from buying processors, according to two people familiar with the latest regulatory decisions.