FT: Determined to Win the AI Race Against the U.S.
The Financial Times (FT) reported on October 10 that China has strengthened customs inspections to block imports of Nvidia's artificial intelligence (AI) chips, following its recent ban on the purchase of these chips.
Citing sources, FT stated that in recent weeks, Chinese customs authorities have deployed inspection teams at major ports across the country to conduct strict checks on semiconductor shipments. According to the sources, this customs crackdown began after Chinese authorities issued a directive prohibiting domestic companies from purchasing Nvidia chips, aiming to ensure that companies have indeed stopped ordering these chips.
Previously, FT reported that the Cyberspace Administration of China (CAC) had notified domestic tech companies such as ByteDance and Alibaba to halt testing and orders of Nvidia's new China-specific low-end chip, the 'RTX 6000D.' FT interpreted the customs crackdown as a demonstration of the Chinese authorities' determination to ensure that domestic tech companies do not rely on the United States and to secure victory in the AI race against the U.S.
Until now, Chinese customs had not taken measures to block semiconductor imports as long as tariffs were paid. FT reported that over the three months since May this year, more than 1 billion dollars' worth of Nvidia's top-tier AI chips had been smuggled into and sold in China.
Amid the ongoing U.S.-China tech supremacy competition, the U.S. government blocked exports of Nvidia's H20 chip to China in April, but lifted the ban after three months. Subsequently, Nvidia released another China-specific AI chip, the RTX 6000D.
Chinese authorities are simultaneously accelerating the development of the domestic semiconductor industry while pressuring domestic companies to stop using Nvidia chips. FT reported that this crackdown emerged after senior government officials determined that recent Chinese-made chips had reached performance standards comparable to Nvidia's China-specific chips.
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