Nvidia's H20 chips pose security concerns for China, a social media account affiliated with China's state media said on Sunday, after Beijing raised concerns over backdoor access in those chips. The H20 chips are also not technologically advanced or environmentally friendly,

The Financial Times reports that Washington has begun issuing Nvidia with licenses to sell its H20 chips to China. It removes a big roadblock to the company's access to a major market.

Chinese state media raises alarms about Nvidia's H20 chips, citing security risks and lack of technological advancement. Developed for the Chinese market, these chips faced scrutiny due to potential backdoor access amidst U.

China wants the United States to ease export controls on chips critical for artificial intelligence as part of a trade deal before a possible summit between Presidents Donald Trump and Xi Jinping, the Financial Times reported on Sunday.

Nvidia said on Thursday its products have no "backdoors" that would allow remote access or control after China raised concerns over potential security risks in the firm's H20 artificial intelligence chip.

China's cyberspace regulators have summoned Nvidia over security concerns about its H20 chips. They claim the chips can be tracked and turned off remotely.

It is unclear how many licences may have been issued, which firms Nvidia was permitted to ship to, and the value of the shipments allowed.

Continued reliance on the American chipmaker could slow China's push for self-reliance, say analysts. Read more at straitstimes.com. Read more at straitstimes.com.

The export restrictions on the H20 chip are expected to have a major impact on NVIDIA's sales. The company has warned that these curbs will cut its revenue by $8 billion in the July quarter. In April, NVIDIA had predicted a $5.5 billion charge due to these restrictions but later revised it down by $1 billion as some materials could be reused.

Nvidia earlier this month said the U.S. government is giving permission to sell its H20 microchip again in China — but now a Chinese regulator is raising a red flag.

Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the U.S. firm to change its mind about just relying on its existing stockpile.