Latest news with #CyberspaceAdministration
Forbes
2 days ago
- Business
- Forbes
Contra China's ‘Time Bomb' U.S. Spying Concerns, Trade Is Peaceful
It was inevitable that American companies would eventually reap the bitter fruits of protectionist activity within the U.S. See the Cyberspace Administration of China's request to Nvidia for 'an explanation regarding security risks of vulnerabilities and back doors.' American protectionism, meet your blowback. For background, the Ministry of State Security in China recently expressed worry about 'Backdoors' and 'time bomb' spying threats within computer chips. Supposedly the H20 chips created by Nvidia specifically 'could have been intentionally embedded – in the design and manufacturing stage,' thus 'allowing the manufacturers to control devices remotely with particular signals, including automatically turning on camera and microphone, or ordering automatic collection of specific data in the background and sending it back.' The charges rate obvious questions. Why would Nvidia want to engage in spycraft meant to weaken an alleged enemy nation like China? Exactly because China represents a huge market for Nvidia now, and a much bigger market in the future, why on earth would it go to such great and expensive lengths to build market share in China, only for it to endanger all it's worked for with 'backdoors' and 'time bombs' meant to harm the very country it's so intent on prospering within. The incentives just aren't there. In addition to risking the franchise with spying activities, why would Nvidia want to bring harm to China in the first place? See the previous paragraph. As evidenced by China's growth potential, Nvidia is heavily invested in the country's present and future prosperity. Which is the point, though it's one that protectionist entities with the U.S. political and administrative classes would be most wise to come to terms with. That's because every time a Chinese company has the temerity to succeed stateside, protectionist impulses within the political and administrative classes get to work on discrediting the company with charges of – yes – espionage. Consider a June editorial in the Wall Street Journal about increasingly popular (stateside) Chinese company, Temu. The editorial said, 'As long as Chinese companies are putting backdoors and malware on American devices, state AGs can help protect consumers.' The implied point of the editorial was that trading with the American people by Chinese companies was and is a way to spy on the U.S. If the accusations sound similar to those lodged by China's Cyberspace Administration and Ministry of State Security, that's plainly the point. Both sides are essentially doing the same thing. The attacks on U.S.-based Nvidia and China-based Temu (along with other corporations hatched in China like TikTok and Huawei) aren't about spying and national security, they're about protectionism. Considering Nvidia, Chinese businesses are big fans of its chips in much the same way that U.S. consumers are big fans of some of China's top companies, not to mention their desire to purchase the plenty of many more. Think BYD. The main thing is that when the U.S. political class attempts to discredit Chinese companies based on flinty national security concerns, they ensure blowback of the kind we've seen last week, and that some within the Chinese state love. Translated, they don't want Chinese companies to become 'addicted' to Nvidia chips in the same way that protectionist U.S. interests don't want Americans to become 'addicted' to Temu, TikTok and others. The best, most peaceful solution to all this is for U.S. political types to walk away. As we see once again from last week, protectionism begets protectionism. Not only is the latter anti-growth, it's also anti national security when it's remembered that the best way to keep countries from warring with each other is to allow the people within them to trade with one another.
Tahawul Tech
2 days ago
- Business
- Tahawul Tech
Nvidia insisted H20 chips have ‘no backdoors'
Nvidia has defended the security of the semiconductor following a probe by the Cyberspace Administration of China after the company resumed sales in the country, Reuters reported. In post on Tencent's Weixin app, the regulator called on Nvidia to explain a push by US politicians for advanced AI chip exports from the country to be equipped with tracking and location capabilities. The regulator also claimed 'serious security issues' with Nvidia's computing chips had been exposed and US AI experts revealed the company's chips have mature tracking, location and remote shutdown features. It called on the chipmaker to submit relevant documentation. In a meeting Nvidia insisted its chips have no backdoors allowing remote access, the news agency wrote. Earlier this week, Nvidia ordered its Taiwan-based contract manufacturer to restart production of the China-specific AI chip, which was expected to receive the required export licence from US authorities, due to rising demand. The move to re-open sales to China drew sharp opposition from security experts and politicians in the US. Source: Mobile World Live Image Credit: Nvidia
Yahoo
3 days ago
- Business
- Yahoo
Nvidia Faces China Trust Test Over Security Concerns
Nvidia (NVDA, Financials) is facing renewed pressure in China after state-run newspaper People's Daily said the chipmaker must deliver convincing security proofs to address concerns about potential risks in its products. Warning! GuruFocus has detected 5 Warning Signs with NVDA. The commentary, titled Nvidia, how can I trust you? and posted on the outlet's social media account Friday, said foreign companies must treat security as a basic prerequisite under Chinese law. The warning came a day after the Cyberspace Administration of China said it was concerned about possible backdoor vulnerabilities in Nvidia's H20 artificial intelligence chip. The regulator said it had called the company to a meeting to determine whether the chip posed any risk to Chinese user data and privacy. A backdoor is a hidden way to bypass normal authentication or security controls. The concerns emerged weeks after the U.S. reversed an export ban on some Nvidia AI chips, a move that had been expected to support the company's China sales. In a statement to Reuters, Nvidia said cybersecurity is critically important and denied that its chips contain backdoors that could allow remote access or control. The regulator also voiced concern over a U.S. proposal that advanced chips sold abroad be equipped with tracking and positioning functions. Investors will be watching whether Beijing's scrutiny affects Nvidia's ability to sell high-end AI chips in one of its key markets. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Nvidia must provide 'security proofs' to regain trust:China state media
BEIJING (Reuters) -Nvidia (NVDA) must produce "convincing security proofs" to eliminate Chinese users' worries over security risks in its chips and regain market trust, a commentary published by China's state-run media People's Daily said on Friday. Foreign companies must comply with Chinese laws and take security to be a basic prerequisite, said the commentary - titled "Nvidia, how can I trust you?" - which was published on the paper's social media account. In a statement sent to Reuters, an Nvidia spokesperson reiterated that "Cybersecurity is critically important to us". "NVIDIA does not have 'backdoors' in our chips that would give anyone a remote way to access or control them," the spokesperson said. The commentary appeared a day after Beijing raised concerns over potential security risks in Nvidia's H20 artificial intelligence chip, casting uncertainty over the company's sales prospects in China weeks after a U.S. export ban was reversed. The Cyberspace Administration of China, the country's internet regulator, said it was concerned by a U.S. proposal for advanced chips sold abroad to be equipped with tracking and positioning functions. The regulator said it had summoned Nvidia to a meeting to explain whether its H20 AI chip had any backdoor security risks, as it was worried that Chinese user data and privacy rights could be affected. A backdoor risk refers to a hidden method of bypassing normal authentication or security controls.
Yahoo
6 days ago
- Business
- Yahoo
Nvidia Faces China Security Pressure, Shares Slip
Nvidia (NASDAQ:NVDA) crept lower as Chinese pressure over chip security ramped up, sending the stock down about 2% amid growing friction and a very public demand for convincing security proofs. State-run commentary and a summon from the Cyberspace Administration of China over alleged backdoor risks in H20 chips injected new uncertainty, even as Nvidia pushed back, telling Reuters it has no backdoors and stressing that cybersecurity is critically important. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Company reps have already been interviewed by regulators, and the broad tone is tense: China frames the probe as protecting user data, while Nvidia is trying to keep its access to a key revenue market intact. The timing matters. Nvidia had just signaled potential resumption of H20 AI chip sales in China after earlier U.S. export limits, a restriction it said cost roughly $15 billion in lost sales. The firm has also rolled out a new Blackwell-based AI chip tailored for Chinese factory automation and logistics, trying to thread the needle between compliance and demand. If those security concerns stick or expand, it could bleed into sentiment on a stock that's otherwise been riding strong performance this year. Why it matters? the showdown makes China both a critical upside and a political risk; investors will be watching whether the probe leads to renewed export friction, independent security validation, or a de-escalation that keeps Chinese demand intact. This article first appeared on GuruFocus. Sign in to access your portfolio
