Nvidia’s H20 Chips: Chinese Concerns Over Security and Backdoors in Advanced AI Technology Amid US-China Trade Tensions

Nvidia’s H20 chips have raised security concerns in China, according to a state media-affiliated account. The account, Yuyuan Tantian, which is linked to CCTV, claims that the artificial intelligence (AI) chips may contain “backdoors” that could compromise their functionality and security.

The commentary comes after China’s cybersecurity administration also expressed concerns over potential backdoor access in these chips. Nvidia has consistently denied that its products have backdoors.

China’s access to American technology, particularly high-end chips used in AI development, has become a contentious issue in the tech and trade disputes between the two economies as they compete for technological dominance.

A trade truce, which reduced triple-digit tariffs, is due to expire on August 12, though there are indications that an extension may be agreed upon following talks in Sweden last month.

In June, Nvidia announced it would resume sales of the H20 chip to China after the White House altered export controls imposed in April amid escalating trade tensions. US Treasury Secretary Scott Bessent stated at the time that the Nvidia export controls were a negotiating tool in larger US-China trade negotiations.

Nvidia and Advanced Micro Devices (AMD) have reportedly agreed to pay the US government 15% of their revenues from semiconductor sales to China in exchange for export licenses. This arrangement is part of a deal with the Trump administration to obtain export licenses for Nvidia’s H20 chips and AMD’s MI308 chips in China, according to the Financial Times.

Nvidia launched the H20 chip last year to maintain market access following strict export controls implemented under the Biden administration that prohibited the export of more powerful chips.

The announcement that Nvidia would be able to export the H20 chip to China has raised concerns among some US lawmakers, who advocate for tight controls to prevent China from utilizing American technology for military and AI advancements.

China’s growing apprehension about the security of these chips follows the White House’s recommendation last month to implement export controls that would verify the location of advanced AI chips. Chinese authorities summoned Nvidia over security concerns related to “tracking and positioning” and “remote shutdown” capabilities late last month.

In a blog post published last week, Nvidia reaffirmed that its chips do not have backdoors, spyware, or kill switches, stating that embedding such features into chips would benefit hackers and hostile actors.

China’s security concerns seem to echo the US’s past apprehensions about Chinese technology, most notably the first Trump administration’s campaign against Huawei’s growing influence in global communications infrastructure.

Chinese leaders have also advocated for China’s tech firms to achieve self-sufficiency and reduce reliance on American-made chips to realize Beijing’s AI and technological ambitions. Experts believe that controls on chips like the H20 could accelerate China’s innovation efforts.

However, the H20 is not the only technology reportedly entangled in negotiations between the two sides. According to another report from the Financial Times published Sunday, China is seeking for the US to ease export controls on a critical component for AI chips as part of a potential trade deal ahead of a possible summit between President Donald Trump and Chinese leader Xi Jinping.

Chinese officials have reportedly told Washington experts that Beijing wants the Trump administration to relax export restrictions on high-bandwidth memory (HBM) chips, according to the Financial Times, citing several sources familiar with the matter. The US government imposed export controls on the sale of such memory chips to China last year.