Nvidia Struggles in China as China-Specific Chip Is Blocked

Nvidia is again facing hurdles in the Chinese market after the local authorities reportedly blocked the distribution of Nvidia RTX 5090D V2 graphics cards in the country. The GPU is a product specifically engineered by Nvidia to be saleable in China in line with US export restrictions on advanced artificial intelligence (AI) chips. According to a Financial Times report cited by Ars Technica, the chip has been added to the list of forbidden goods at several Chinese customs checkpoints since Friday 15 May 2026. The policy reportedly emerged while Nvidia CEO Jensen Huang was in Beijing alongside US President Donald Trump on a state visit to China from 13-15 May 2026. The exact reasons for China blocking the distribution or entry of the RTX 5090D V2 into the country are not known. To date, Chinese customs authorities and Nvidia have not issued formal comments regarding the report. However, the situation is seen as tightening Nvidia’s position. After all, the US chipmaker faces export restrictions from the US government, while China is pressing to limit Nvidia products, including variants tailored for the local market. The move by China is viewed as an effort to reduce dependence on US technologies and to strengthen the domestic chip industry, such as products made by Huawei and Cambricon. Huawei is expected to become the biggest player in the AI chip market in China this year. Recently, Huawei’s AI chip sales have reportedly risen as many Chinese companies switch to domestic products as replacements for Nvidia. Morgan Stanley investment bank estimates that the Chinese AI chip market could reach 67 billion US dollars by 2030, with around 86 percent of the market predicted to be controlled by Chinese domestic companies. This development also suggests Nvidia’s competition in the Chinese market could intensify in the years ahead, as summarised by KompasTekno from Ars Technica.