• China's Cyberspace Administration summons Nvidia to explain security risks regarding its H20 chips.
• Nvidia has denied the existence of any backdoor features in its chips, asserting their security.
• Concerns stem from potential tracking capabilities and risks associated with user data and privacy.
• Recent U.S. legislative moves suggest a requirement for AI chips to incorporate tracking features before export.
• The Chinese military has shown interest in Nvidia's chips for various applications despite national security tensions.

China's Cyberspace Administration has summoned Nvidia representatives to address concerns regarding potential security risks associated with its H20 artificial intelligence chips. The agency specifically raised issues about the "backdoor security risks" that could compromise Chinese user data and privacy rights, citing recent reports and legislative pressures from U.S. lawmakers advocating for tracking capabilities in advanced technology sold abroad. The meeting took place on July 31, 2025, just weeks after the U.S. government reversed export bans on these chips, highlighting the ongoing tension in U.S.-China tech relations, according to SCMP and Reuters.

Nvidia responded to the allegations, stating that it does not have any backdoors in its chips that would allow for remote access or control. An Nvidia spokesperson emphasized, "Cybersecurity is critically important to us," reiterating the company's commitment to security while denying claims made by the Cyberspace Administration of China. This insistence comes against a backdrop of rising scrutiny of U.S. technology by Chinese regulators, as highlighted in reports by Bloomberg and Reuters.

Moreover, the Cyberspace Administration's inquiry into Nvidia coincides with ongoing critiques from Chinese state media, which have urged the company to "prove the safety of its products." Comments in the People's Daily emphasized the need for tangible security assurance to regain user trust, reflecting broader anxiety among Chinese consumers about cybersecurity in imported technology, as reported by SCMP.

This scrutiny occurs against the backdrop of heightened trade tensions, with U.S. policymakers suggesting mandatory location verification technologies in chips exported to China to ensure compliance with U.S. security standards. Such legislative proposals could complicate Nvidia's operational landscape further. Recent statements from Nvidia acknowledged that while it has resumed sales of its H20 chips, challenges remain in navigating U.S. export controls, as highlighted by India Times and Reuters.

Notably, documents reviewed by Business Insider indicate that the Chinese military has expressed interest in utilizing Nvidia's chips for advanced projects, including server applications, despite the overarching focus on domestic technology self-sufficiency expressed by Chinese officials. This highlights a multifaceted relationship where demand for high-performance technology persists even amidst regulatory scrutiny, as noted in Business Insider and the implications of geopolitical tensions in the semiconductor industry.