Nvidia has asked key contractors—including Samsung Electronics, Amkor Technology and Foxconn—to suspend work on the H20 artificial-intelligence chip it designed for the Chinese market, according to reports from Bloomberg, Reuters and The Information. The instruction follows guidance from Beijing that state-linked firms avoid buying the component, which Chinese regulators have flagged as a potential security risk. China’s Cyberspace Administration has questioned whether the H20 contains tracking or remote-shutdown features, prompting state entities to shift orders to domestic alternatives. Foreign Ministry spokesperson Mao Ning said inquiries about Nvidia’s move should be directed to the relevant authorities. The pause adds fresh strain to U.S.–China technology trade one year after Washington began allowing limited H20 sales subject to export controls. Speaking in Taipei, Nvidia Chief Executive Officer Jensen Huang said he was “surprised” by the security doubts, insisting the chip has no backdoors and that ample inventory is ready should Chinese customers place orders. Huang added that the company is discussing a slower, export-compliant "B30A" processor with the Trump administration to maintain a presence in the world’s second-largest AI market. Investors reacted swiftly. Nvidia shares slipped about 1.1% in pre-market trading on 22 August, extending a two-week slide, while the broader Nasdaq outperformed. In contrast, China’s CSI Semiconductor Industry Index advanced as much as 3% and Shanghai-listed Cambricon Technology jumped 20% to a record, reflecting optimism that domestic suppliers will benefit if Nvidia’s China sales weaken. The flashpoint underscores China’s stated aim of sourcing 70% of its AI chips locally and highlights the commercial risks U.S. chipmakers face amid intensifying geopolitical scrutiny of advanced semiconductors.