China is banning Nvidia chips in an unexpected second order effect of the US tech embargo

 • September 18, 2025

 

Since Trump and Biden launched the tech and trade wars with China, I have written several essays arguing that Beijing should pursue a full decoupling with the US for national security and economic competitiveness reasons.

It seems that is happening right now. Beijing just banned its big tech companies from buying the Nvidia H20 and RTX 6000D chips. Nvidia developed these two GPU AI accelerator chips specifically for the Chinese market in compliance with the US ban of advanced AI chips to China.

Beijing just threw back the trade embargo playbook in Washington’s face. This is a textbook example of how an ill-conceived coercive policy blows up in the face of the perpetrator. And another case study of how the far more intelligent technocrats in Beijing have outsmarted the short-sighted political functionaries in Washington.

Let’s examine what happened.

https://www.unz.com/bhua/delete-usa/