Chinese customs authorities have launched a wide-ranging crackdown on the import of Nvidia AI chips, according to a report by The Financial Times published on October 9. Enforcement teams have been deployed at major ports to inspect data-center hardware, with a particular focus on Nvidia’s H20 and RTX 6000D chips—models specifically designed to comply with U.S. export restrictions but now under increased scrutiny from Beijing. The inspections, which began in recent weeks, are being coordinated by China’s Cyberspace Administration of China (CAC) in collaboration with customs officials. Initially targeting the H20 and RTX 6000D, the campaign has since expanded to include “all advanced semiconductor products.” Authorities are actively working to prevent the smuggling of U.S.-made chips into domestic data centers. The move comes at a critical time for Nvidia’s China strategy. The H20, introduced last year as a compliance-focused alternative to banned models, had only recently begun shipping in significant volumes to Chinese server manufacturers. However, reports indicate that companies like ByteDance and Alibaba were instructed in mid-September to halt further H20 orders, suggesting that existing shipments may now be blocked or delayed indefinitely. China’s crackdown reflects a complex balancing act. While the country continues to push forward with its domestic semiconductor ambitions, progress remains uneven. Although homegrown AI accelerators are being developed and manufactured at Chinese foundries, major bottlenecks persist—particularly in high-bandwidth memory (HBM) supply and overall fabrication capacity. This means that while China is investing heavily in self-reliance, it still faces challenges in scaling up reliable, high-performance alternatives to U.S. chips. As a result, data center operators in China are caught between two realities: potential delays or cancellations of incoming H20 and RTX 6000D shipments, and slower-than-expected rollouts of domestic chip solutions. The enforcement actions underscore Beijing’s growing determination to control the flow of critical technology, even as it seeks to reduce reliance on foreign suppliers. Nvidia has declined to comment on the situation.