China Completely Bans the Purchase of NVIDIA AI Chips — Don't Buy, Don't Use, and Beyond: The Shortest Path Chosen by China for "Domestic Production"

China's internet regulator, the CAC, has reportedly instructed major tech companies like Alibaba and ByteDance to halt purchases of NVIDIA's AI chips. This includes the RTX Pro 6000D intended for the Chinese market, with requests to cancel existing tests and orders. Following the reports, NVIDIA's stock fell by about 2-3%. CEO Jensen Huang commented that "there are larger issues between the US and China," while China's Ministry of Foreign Affairs expressed a desire to continue dialogue for supply chain stability. The backdrop to this is an accelerated push for domestic semiconductor independence, with Huawei announcing plans for large computing nodes like Ascend and Atlas. In the short term, Chinese companies may face increased development burdens, while in the long term, the expansion of a domestic ecosystem is expected. For NVIDIA, reallocating to non-Chinese markets and leveraging software assets will be key challenges to supplement revenue.