China summons Nvidia over ‘serious security issues' with AI chips
Chinese authorities summoned Nvidia representatives on Thursday to discuss 'serious security issues' over some of its artificial intelligence chips, as the US tech giant finds itself entangled in trade tensions between Beijing and Washington. Nvidia is a world-leading producer of AI semiconductors, but the United States effectively restricts which chips it can export to China on national security grounds.
A key issue has been Chinese access to the 'H20', a less powerful version of Nvidia's AI processing units that the company developed specifically for export to China. The California-based firm said this month it would resume H20 sales to China after Washington pledged to remove licensing curbs that had halted exports. But the firm still faces obstacles—US lawmakers have proposed plans to require Nvidia and other manufacturers of advanced AI chips to include built-in location tracking capabilities.
And Beijing's top internet regulator said Thursday it had summoned Nvidia representatives to discuss recently discovered 'serious security issues' involving the H20.
The Cyberspace Administration of China said it had asked Nvidia to 'explain the security risks of vulnerabilities and backdoors in its H20 chips sold to China and submit relevant supporting materials'.
The statement posted on social media noted that, according to US experts, location tracking and remote shutdown technologies for Nvidia chips 'are already matured'. The announcement marked the latest complication for Nvidia in selling its advanced products in the key Chinese market, where it is in increasingly fierce competition with homegrown technology firms.
CEO Jensen Huang said during a closely watched visit to Beijing this month that his firm remained committed to serving local customers. Huang said he had been assured during talks with top Chinese officials during the trip that the country was 'open and stable'.
'They want to know that Nvidia continues to invest here, that we are still doing our best to serve the market here,' he said. Nvidia this month became the first company to hit $4 trillion in market value—a new milestone in Wall Street's bet that AI will transform the global economy.
Jost Wubbeke of the Sinolytics consultancy told AFP the move by China to summon Nvidia was 'not surprising in the sense that targeting individual US companies has become a common tool in the context of US-China tensions'.
'What is surprising, however, is the timing,' he noted, after the two countries agreed to further talks to extend their trade truce. 'China's action may signal a shift toward a more assertive stance,' Wubbeke said. Beijing is also aiming to reduce reliance on foreign tech by promoting Huawei's domestically developed 910C chip as an alternative to the H20, he added.
'From that perspective, the US decision to allow renewed exports of the H20 to China could be seen as counterproductive, as it might tempt Chinese hyperscalers to revert to the H20, potentially undermining momentum behind the 910C and other domestic alternatives.' New hurdles to Nvidia's operation in China come as the country's economy wavers, beset by a years-long property sector crisis and heightened trade headwinds under US President Donald Trump.
Chinese President Xi Jinping has called for the country to enhance self-reliance in certain areas deemed vital for national security—including AI and semiconductors—as tensions with Washington mount.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Jazeera
11 hours ago
- Al Jazeera
Philippines, India hold first joint naval drill in disputed South China Sea
India and the Philippines have staged their first joint sail and naval exercises in the disputed South China Sea. The two-day joint military deployment that kicked off on Sunday is likely to anger China, which claims nearly the entire key waterway and has separate territorial disputes with the two Asian countries. Philippine Chief of Staff Romeo Brawner Jr said on Monday that the joint sail took place inside his country's exclusive economic zone. 'We did not experience any untoward incidents, but there are still those shadowing us – as we had already expected,' Brawner told reporters, without naming China. In past joint patrols with other foreign navies, Chinese navy and coastguard ships have kept watch from a distance, according to the Philippine military. Indian navy ships that took part included guided missile destroyer INS Delhi, tanker INS Shakti and corvette INS Kiltan. The Philippines deployed two frigates, BRP Miguel Malvar and BRP Jose Rizal. The exercise coincided with President Ferdinand Marcos's departure for a five-day trip to India, where he said he would look to deepen maritime ties and seek cooperation on sectors including defence, pharmaceuticals and agriculture. Brawner, meanwhile, expressed hope that Filipino forces could engage India's military in more joint manoeuvres in the future. The drill 'sends a powerful signal of solidarity, strength in partnership and the energy of cooperation between two vibrant democracies in the Indo-Pacific', he said. China's Ministry of Foreign Affairs said in a statement that territorial and maritime disputes should be resolved between the countries directly involved, and no third party should intervene. In response to a question last week about the Philippines' plans to build up military cooperation, the Chinese Ministry of National Defense called the country a 'troublemaker' that has aligned itself with foreign forces to stir up trouble, in what China deems its own territorial waters. 'China never wavers in its resolve and will safeguard national territorial sovereignty and maritime rights and interests, and take resolute countermeasures against any provocations by the Philippine side,' spokesperson Zhang Xiaogang had told reporters. The South China Sea is a strategic shipping route where $3 trillion of annual shipborne commerce takes place. A 2016 ruling of an international arbitral tribunal found China's sweeping claims have no basis under international law, a decision Beijing rejects.
Qatar Tribune
21 hours ago
- Qatar Tribune
Clash between European Union and China over green technology escalates
Agencies Brussels As the world races toward a low-carbon future, the geopolitical undercurrents of climate action are becoming increasingly turbulent. Nowhere is this more evident than in the escalating tensions between the European Union and China, where green technology has become both a symbol of cooperation and a flashpoint of conflict. The recent Financial Times article, 'EU and China stand-off over climate action before Xi and von der Leyen meet,' captures this friction, highlighting how the EU's anti-subsidy probe into Chinese electric vehicles (EVs) has provoked a sharp rebuke from Beijing. But beneath the surface of trade disputes lies a deeper story, one that reveals the strategic ambitions of Xi Jinping and the Chinese Communist Party (CCP) to dominate the global green economy while resisting external scrutiny. The EU's investigation into Chinese EV subsidies is not merely a bureaucratic exercise; it is a direct challenge to China's state-led industrial model. For years, Beijing has poured vast subsidies into its clean tech sector, enabling Chinese firms to flood global markets with low-cost solar panels, batteries, and EVs. While this has accelerated the global green transition, it has also raised alarms in Brussels and Washington about unfair competition and strategic dependency. Xi Jinping's government has responded with characteristic defiance. Framing the EU's actions as protectionist and politically motivated, Beijing has warned of retaliatory measures, signalling that it views climate-linked trade disputes as part of a broader Western effort to contain China's rise. This narrative fits neatly into the CCP's domestic messaging, which portrays China as a victim of Western double standards while asserting its right to industrial self-determination. Under Xi, China's green industrial policy is not just about environmental stewardship; it is a pillar of national strategy. The CCP has identified clean technology as a domain where China can leapfrog traditional powers and assert global leadership. This ambition is backed by a sprawling network of state-owned enterprises, subsidies, and regulatory protections that have enabled Chinese firms to dominate key segments of the green supply chain. Rare earths, solar panels, and EV batteries are not just commodities; they are instruments of geopolitical leverage. The EU's dependence on Chinese inputs for its green transition places it in a precarious position. Brussels faces a dilemma: how to enforce fair competition without jeopardizing its own climate goals. Xi's government is acutely aware of this dependency and has not hesitated to exploit it, using export controls and diplomatic pressure to remind Europe of the costs of confrontation. While China has made impressive strides in renewable energy deployment, its climate governance remains tightly controlled by the CCP. Xi's top-down approach to environmental policy, often described as 'authoritarian environmentalism,' prioritizes state control over market mechanisms or civil society engagement. This model allows for rapid mobilization of resources but lacks transparency, accountability, and public participation. Critics argue that this approach enables greenwashing and data manipulation, undermining global trust in China's climate commitments. Moreover, the CCP's suppression of environmental NGOs and independent researchers has stifled domestic scrutiny, making it difficult to assess the true environmental impact of China's industrial policies. In this context, the EU's push for fair competition and regulatory transparency is not just an economic issue; it is a challenge to the CCP's governance model. The EU's decision to launch an anti-subsidy probe marks a turning point in its relationship with China. For years, Brussels pursued a policy of engagement, hoping that economic integration would encourage political convergence. That illusion has faded. The green tech standoff reflects a broader strategic awakening in Europe, where concerns about dependency, coercion, and systemic rivalry are reshaping policy. Yet Europe's position remains constrained by its reliance on Chinese supply chains. The EU's climate ambitions are entangled with its economic vulnerabilities. This interdependence complicates efforts to decouple or diversify, especially in the short term. Xi Jinping understands this dynamic and is likely to use it as a bargaining chip in upcoming negotiations with European Commission President Ursula von der Leyen. Xi's leadership style is defined by calculated brinkmanship, pushing boundaries while avoiding outright rupture. In the climate domain, this means presenting China as an indispensable partner while resisting external pressure for reform. The CCP's strategy is to shape global norms from within, leveraging its market size and technological prowess to dilute Western influence. However, this approach carries risks. If China is perceived as weaponizing green trade or undermining fair competition, it could trigger a backlash that accelerates efforts to diversify supply chains and tighten trade rules. Already, the U.S. and EU are exploring new alliances and regulatory frameworks to counter China's dominance. Xi's challenge is to maintain China's centrality in the green economy without provoking a coalition of resistance. The upcoming meeting between Xi and von der Leyen will be more than a diplomatic formality; it will be a test of whether two interdependent yet adversarial powers can find common ground in the face of mounting tensions. For Xi Jinping and the CCP, the stakes are high. Their vision of green leadership is inseparable from their broader quest for global influence and domestic legitimacy. But if that vision relies on coercion, opacity, and strategic dependency, it may ultimately undermine the very cooperation needed to address the climate crisis. The EU, for its part, must navigate a delicate balance—asserting its values and interests without derailing the green transition. In this high-stakes standoff, the path forward will require not just diplomacy, but a rethinking of how power, policy, and the planet intersect.
Qatar Tribune
a day ago
- Qatar Tribune
Gold's surge set to continue in H2, driven up by central banks
Agencies The seemingly unstoppable rise in prices of gold, considered a safe haven in times of turmoil, is expected to continue into the second half of the year, according to traders and financial analysts. In its latest outlook, the World Gold Council (WGC) predicts that prices will keep climbing, albeit at a slightly slower pace. Gold has become so expensive that demand from the jewelry sector has slumped. Global consumption by jewelry manufacturers dropped from 435 tons in the first quarter to 356 tons in the second, the WGC reported earlier this week. Meanwhile, the price of gold has soared to just over $3,300 per troy ounce (31.1 grams), nearly double the level seen in 2022. Goldman Sachs forecasts it could reach $4,000 by mid-2026. Analysts point to sustained buying by central banks – especially China's – as a key driver of this rally, as nations seek to reduce their reliance on the U.S. dollar. 'As long as central banks continue to build up gold reserves, prices will keep moving north,' says Michael Eubel, head of precious metals trading at BayernLB, one of Germany's leading gold dealers. 'Central banks have been buying around 1,000 tons of gold annually in recent years,' adds Benjamin Summa, a spokesperson for Munich-based gold trader Pro Aurum. 'A significant share of that is likely attributable to China.' Figures from the World Gold Council show that China has increased its gold reserves nearly sixfold since 2000, from 395 tons to 2,292 tons as of the end of the first quarter of 2025. That puts it in seventh place globally. But many experts believe Beijing's actual holdings are far higher. 'I estimate that China has acquired at least another 500 tons via secondary markets,' says Eubel. China is also the world's largest gold producer, and 'very little of that output is exported,' he adds. It's no secret that China's Communist Party would prefer to end U.S. dominance sooner rather than later. A key component of great-power status is holding significant gold reserves. But China is by no means the only country buying gold. 'These states are aiming to reduce their dependence on the U.S. dollar and are therefore increasingly turning to physical gold,' said Summa. Among them are India, the United Arab Emirates (UAE) and Qatar. This year, however, the most active buyer isn't China, but Poland, which has purchased more than 48 tons so far in 2025, according to the WGC – putting it at the top of the list. For many years, Russia was the largest official gold buyer, but it has scaled back purchases since 2020, according to official data.
