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China probes Nvidia over AI chip 'tracking' security risks

China probes Nvidia over AI chip 'tracking' security risks

NBC News3 days ago
While Nvidia has been given assurances by Washington that it will be allowed to resume exports of its made-for-China H20 general processing units, the AI chips may be met with increased scrutiny from Beijing.
According to the Cyberspace Administration of China, Nvidia met with Beijing officials on Thursday regarding potential national security concerns posed by its H20 chips, which recently saw restrictions on their export lifted following an effective ban in April.
Nvidia was requested 'to clarify and submit relevant supporting documentation regarding security risks, including potential vulnerabilities and backdoors, associated with its H20 computing chips sold to China,' according to a CNBC translation of a statement from CAC.
In a post, the regulator said that Nvidia's computing chips were reported to have serious security vulnerabilities, also noting calls from U.S. lawmakers for mandatory tracking features to be placed on advanced chips exported from the country.
In its statement, CAC added that American AI experts had already revealed that Nvidia's computing chips pose mature 'tracking and positioning' and 'remote shutdown' technologies.
The statement appears to be referencing a report from Reuters in May that said Bill Foster, a Democrat lawmaker from Illinois, was planning to introduce legislation that would require advanced AI chipmakers like Nvidia to include a built-in location reporting system.
Forester, who once worked as a particle physicist, and independent technical experts reportedly agreed that the technology to track chips was readily available, with much of it already built into Nvidia's chips.
Forester's bill would also seek to give U.S. authorities the power to remotely shut down chips being used without proper licenses, in a measure to fight chip smuggling and export loopholes.
Nvidia did not immediately respond to a request for comment from CNBC.
In recent weeks, many American lawmakers have also taken issue with the reported rollback of restrictions on Nvidia's H20 chips, warning they will advance Beijing's AI capability.
This week, Nvidia reportedly placed orders for 300,000 H20 chipsets with contract manufacturer TSMC as it seeks to meet Chinese demand.
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Full integration could accelerate China's ambitions in semiconductor independence and technological parity. Supply chain control: Taiwan plays a central role in global supply chains—particularly in electronics and green technology manufacturing. Its absorption would give China a critical advantage in these sectors. 3. What would change if China controls Taiwan? a. Shifts in global security and balances of power Decline of US strategic influence in Asia: Losing Taiwan would seriously weaken Washington's ability to project force in the Western Pacific and could unravel alliances with Japan, Korea, and Australia. Expansion of China's 'kill‑chain' reach: Models show that with Taiwan under PRC control, air-and-missile denial coverage expands, forcing US bases like Guam or the Philippines to operate at reduced effectiveness. b. Global economic fallout Unprecedented disruption: Even a brief conflict or aggressive blockade over Taiwan could cost the world economy over $10 trillion—short-term shocks similar to, or bigger than, the Ukraine war or 2008 financial crisis. Impact on capital and technology: Taiwan is a key conduit for foreign-invested capital and advanced microelectronics. Its loss could throttle foreign inflows, affecting Beijing's broader innovation-driven growth strategy. c. Political and cultural consequences Erosion of democratic autonomy: Taiwan's integration would mean dissolving its democratic institutions, curtailing civil liberties, and subsuming it under the PRC's authoritarian model—something sharply resisted by approximately 90 per cent of Taiwanese people. Continued 'political warfare': China would likely escalate its cognitive warfare campaigns—disinformation, political infiltration, propaganda—aimed at conditioning Taiwanese public opinion to accept Beijing's supremacy. 4. Public and strategic theories on Beijing's motivations Theory / Framework Key Idea Source Great Power Assertion Annexing Taiwan reinforces China's self-declared status as a leading global power, challenging the U.S.-led world order. Reddit , Wikipedia , Barron's 'Cognitive Warfare' Mastery Over time, China could annex Taiwan without force by eroding public will through propaganda and election manipulation. TIME , Wikipedia 'Anaconda Strategy' Beijing applies gradual diplomatic, economic, and military pressure to strangle Taipei's autonomy before physically seizing control. Council on Foreign Relations , Small Wars Journal Premptive Window Strategy Some Western analysts argue China might strike before U.S. internal political changes reduce deterrence or alliances weaken. Reddit , , Domestic Consolidation Taiwan serves as a rallying symbol at home, diverting attention from domestic issues and strengthening leadership legitimacy. Reddit , Small Wars Journal 5. Challenges and limits to a Taiwan takeover Massive military cost and human toll: Models show an amphibious invasion would be extraordinarily difficult—due to Taiwan's terrain, US and allied intervention, and Taiwan's own reserve mobilization plan. Economic blowback: China would face isolation from global markets, capital outflows, and loss of critical technology access—particularly in high-end semiconductors and foreign investment. Domestic risk amid PLA reforms: Xi's ongoing military leadership reshuffle raises questions about the People's Liberation Army's readiness for such a complex operation. 6. What the international community is doing US deterrence doctrine: US policymakers advocate a 'reassure and deter' framework—maintaining ambiguous support for Taiwan's defense while discouraging aggressive PRC action. Allied formation in the Indo-Pacific: Countries like Australia and Japan have pledged closer defense cooperation. A US congressional delegation is visiting Taiwan to reaffirm support. Taiwan civilian readiness: Under the 'Territorial Defense Force' model, Taiwan is enhancing its reserve system and investing in low-cost mobile defense weapons to make occupation prohibitively costly. Conclusion China views Taiwan as integral to its national identity and global power projection plan, but control requires overcoming immense global and domestic resistance. Economic gain and strategic depth are key motivators, yet the full takeover presents massive economic and geopolitical costs, including undermining Beijing's longer-term modernization strategy. Multiple scholarly frameworks—from great power theory to cognitive and political warfare—explain why China may pursue Taiwan even short of war. International deterrents and Taiwan's own resilience planning are central to preventing conflict, although no one can accurately predict Beijing's next move. Ahmedabad Plane Crash Vipul Sipani is a qualified IT professional with over eight years of active working experience. He is a trained web technologist and a certified Ethical Hacker v8 security analyst. Vipul has also been a consultant with the detection and prevention of cyber crimes, with the Cyber Crime Investigation Cell (CCIC) of Rajasthan State Police. Vipul is currently working as editor-in-chief at and he is reachable on [email protected]

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