China bans Nvidia's RTX 5090D V2 during Jensen Huang's Beijing visit
Beijing blocks Nvidia's gaming chip while CEO Huang tours China with Trump
China banned Nvidia's RTX 5090D V2 gaming chip at customs checkpoints last Friday, according to a document seen by the Financial Times and two sources. The action coincided with Nvidia CEO Jensen Huang's visit to Beijing as part of a US delegation with President Donald Trump. The RTX 5090D V2, introduced last August, was already a degraded version designed to comply with US export controls, aimed at Chinese gamers and 3D animators. However, it also served as an alternative for AI developers cut off from Nvidia's most advanced products.
Beijing's move underscores its determination to reduce reliance on US chips and boost domestic players like Huawei and Cambricon. Other Nvidia chips, including the H200 and the China-specific H20, have also been blocked despite US approval for sales to companies like Alibaba and Tencent. Morgan Stanley forecasts China's AI chip market will reach $67 billion by 2030, with 86% supplied domestically. Trump noted China "chose not to" approve H200 purchases because "they want to develop their own." Nvidia is set to report earnings Wednesday, seen as a bellwether for the AI infrastructure boom.
- China banned Nvidia's RTX 5090D V2 at customs while CEO Jensen Huang was visiting Beijing with Trump.
- The chip was a degraded version for gamers but also used by AI developers blocked from advanced Nvidia products.
- Morgan Stanley forecasts China's AI chip market at $67B by 2030, with 86% supplied by domestic firms like Huawei.
Why It Matters
China's escalating chip bans accelerate a decoupling that threatens Nvidia's $17B China revenue and reshapes global AI supply chains.