China Bans Nvidia RTX 5090D V2 During CEO Jensen Huang’s Visit

China has formally banned the import of Nvidia’s RTX 5090D V2 graphics chip, reinforcing its stance in the expanded technology rivalry with the United States. The move was announced while Nvidia CEO Jensen Huang was in China alongside a visit from former US president Donald Trump, highlighting the geopolitical backdrop behind the decision.

According to documents reviewed by the Financial Times and sources familiar with the matter, the RTX 5090D V2 has been added to a roster of restricted goods at China’s customs checkpoints as of last Friday. This development marks another escalation in the ongoing contest for technological leadership in artificial intelligence (AI) and advanced computing between the world’s two largest economies.

Nvidia, a key supplier of advanced graphics processing units (GPUs), has played a central role in powering contemporary AI applications, from training large language models to supporting generative AI systems and data centers. The affected RTX 5090D V2 is a modified chip, reportedly designed to comply with existing US export controls aimed at curtailing the sale of high-performance AI hardware to China.

Beijing’s ban on the chip reflects a broader strategy to reduce dependence on US-origin technologies. The Chinese government has signaled its intention to bolster local semiconductor manufacturers—such as Huawei and Cambricon—as they attempt to close the performance gap with global rivals. This policy aligns with efforts to cultivate a self-sufficient ecosystem for both consumer and AI-focused chips, in light of increasing regulatory pressure from Washington.

Recent years have seen the US introduce export controls restricting the sale of certain advanced semiconductors and AI chips to Chinese entities. In response, Nvidia and other firms have developed 'degraded' versions of their high-end products specifically for the Chinese market. However, China’s latest action suggests that such adaptations may not suffice in the face of strengthening domestic policy objectives.

The ban poses significant challenges for Nvidia’s business strategy in China, its second-largest market after the United States. It also introduces further uncertainty for global supply chains reliant on cross-border chip trade, with potential impacts on the pace of technological advances in AI.

The development is being closely watched by companies and governments worldwide, given the centrality of AI hardware to future economic and strategic competitiveness.

Reference: arstechnica.com