Chinese State Media Also Pressures Nvidia to Submit Security Evidence

On August 1, Chinese state media stated that Nvidia must submit evidence to restore trust regarding security concerns over the H20 chip, which is intended for export to China.

The commentary section of the People’s Daily, the official newspaper of the Chinese Communist Party, posted an article titled "Nvidia, How Can We Trust You?" on its official social media account that afternoon.

The commentary emphasized, "Nvidia must provide convincing security proof regarding the security risks of the H20 chip in order to address the concerns of Chinese users and regain market trust," and added, "CEO Jensen Huang must act on what he has said."

It further stated, "Protecting cybersecurity is as important as defending national territory," and added, "For foreign companies to establish deep roots in the Chinese market, it is fundamental to respect Chinese law and adhere to the red line of security."

Notably, the commentary explained the dangers of security breaches, providing examples such as new energy vehicles like electric cars suddenly stopping in the middle of a highway, or a patient’s equipment failing during remote surgery. It warned, "The moment a backdoor risk (a vulnerability that allows access to information and communication networks by bypassing normal security and authentication functions) appears in a chip, we could face these nightmares at any time."

This commentary drew attention because it was published immediately after the Cyberspace Administration of China summoned Nvidia the previous day to explain the backdoor security risk issue and demanded the submission of evidence. This reconfirmed the authorities’ determination to exert pressure.

In the market, attention is focused on the background of the Chinese authorities’ sudden pressure on Nvidia, which came about two weeks after the resumption of H20 supply to China was decided following a period of suspension due to U.S. government controls. The United States and China held their third high-level trade talks in Stockholm, Sweden, on July 29 (local time), but have not yet made a final announcement regarding tariffs.