China Bans Tech Giants From Buying Nvidia’s RTX Pro 6000D

China’s cyberspace regulator has ordered major tech firms including ByteDance and Alibaba to stop purchasing, testing, or placing new orders for Nvidia’s RTX Pro 6000D AI chips. The directive is aimed at reducing dependence on U.S. hardware and boosting domestic alternatives, marking another step in Beijing’s push for technological self-sufficiency. The move hit shares of NVIDIA Corporation (Zorrox: NVIDIA.) as investors weighed the fallout.

Scope of the Ban and Immediate Fallout

The ban represents a sharp escalation beyond earlier restrictions that targeted Nvidia’s H20 chip. The RTX Pro 6000D had been one of the few advanced models still permitted in meaningful volumes. Now, companies must cancel existing orders and halt testing. For Nvidia, the move signals that even chips designed to comply with U.S. export rules remain at high regulatory risk. Shares fell around 2–3% on the news.

Chinese officials argue that local chips from Huawei, Cambricon, and others now rival the performance of Nvidia’s RTX Pro 6000D and H20 models. That confidence has spurred the government to accelerate adoption of domestic products and curb reliance on foreign suppliers.

Strategic Drivers Behind Beijing’s Move

Beijing has long sought to reduce exposure to U.S. technology controls. The H20 restrictions already forced reliance on alternatives, and the latest ban reflects both confidence in China’s chip roadmap and a willingness to take short-term pain for longer-term independence.

The Cyberspace Administration of China’s move also aligns with national policy priorities: security, tighter control of AI infrastructure, and support for domestic innovation. Restricting Nvidia’s chips is part of a bet that Chinese firms can close the gap in performance and scale over time.

Implications for Nvidia, Chinese Firms, and the Global AI Race

For Nvidia, China’s directive means reduced visibility into one of its most important markets. Even if export rules ease, regulatory uncertainty makes demand unpredictable. Orders expected to flow through may now face delays or cancellations.

Chinese tech firms will face pressure to accelerate adoption of domestic chips. Companies with scale, strong R&D, or government support could benefit, though hurdles remain around ecosystems, tooling, and supply chains.

Globally, the move deepens the fragmentation of AI hardware markets. A two-track system is emerging: U.S.-aligned and China-aligned ecosystems with diverging technologies, supply networks, and compliance requirements.

Risks and What Could Undercut the Ban

Despite the official mandate, implementation risks remain. Some firms may rely on existing inventories or indirect sourcing channels. Domestic chips may still fall short on efficiency for tasks like large-scale AI training. Local chipmakers face constraints in fabrication and access to advanced components.

Diplomatic pushback from Washington could escalate tensions, leading to further restrictions. Nvidia’s global partnerships may come under scrutiny, adding to volatility. Investors risk underestimating how prolonged or costly these disruptions could be.

Tips for Traders

• Watch NVIDIA Corporation (Zorrox: NVIDIA.) earnings and guidance for signs of lost revenue from cancelled Chinese orders

• Track Chinese chipmakers like Huawei and Cambricon for progress on performance benchmarks that could shift global competition

• Monitor U.S. and China export policies; changes could quickly alter risk premiums in tech equities

• Consider supply chain and currency risks for firms dependent on Nvidia hardware

• Use hedging strategies around semiconductor and AI hardware exposures given mounting regulatory volatility