<div id="readability-page-1"><div><div>China has reportedly launched a sweeping customs crackdown on Nvidia Corporation's (NASDAQ:NVDA) AI chips.<h2>Beijing Launches Nationwide AI Chip Inspection Drive</h2>Teams of Chinese customs officers have been mobilized at major ports across the country to conduct stricter inspections of semiconductor imports, reported the Financial Times, citing three people with knowledge of the matter.The initial focus was Nvidia's China-specific AI processors — the H20 and RTX Pro 6000D — which were designed to comply with U.S. export controls.The checks, which began in the past few weeks, were aimed at ensuring Chinese companies stop ordering these Nvidia products following guidance from regulators discouraging their purchase.Officials have since widened the inspections to include all advanced chips to prevent smuggling of restricted U.S. hardware.One source told the publication that customs officials are now checking for false declarations and potential smuggling violations.An Nvidia spokesperson declined to provide a comment to Benzinga.<h2>China Moves To Replace Nvidia With Domestic Chips</h2>The crackdown comes after Beijing's Cyberspace Administration of China (CAC) instructed leading tech companies — including ByteDance and Alibaba Group Holding Ltd. (NYSE:BABA) — to terminate orders and testing of all Nvidia products in mid-September.Chinese authorities are reportedly convinced that domestic semiconductor firms have reached performance levels comparable to Nvidia's downgraded China-only chips.Beijing now plans to triple production of advanced semiconductors next year to fill the demand gap left by Nvidia's exit.Previously, it was reported that at least $1 billion worth of Nvidia's top-tier AI chips were smuggled into China over three months from May, prompting the intensified enforcement effort.<h2>Nvidia Downplays Impact, Says China Revenue Is Already Zero</h2>Earlier this week, Nvidia CEO Jensen Huang told CNBC's Jim Cramer that the company's financial guidance already assumes &#34;China zero&#34; revenue due to ongoing export restrictions.Huang also warned that a complete ban on U.S. chip exports could ultimately harm American firms more than their Chinese counterparts.In August, Nvidia said it expects third-quarter revenue to fall between $52.92 billion and $55.08 billion, compared to the Street consensus of $52.96 billion. The outlook excludes any contribution from H20 shipments to China.Price Action: Despite mounting regulatory headwinds, Nvidia remains the world's most valuable chipmaker, with a market capitalization of about $4.68 trillion. Shares have climbed more than 42% over the past year and are up 39% so far in 2025, according to Benzinga Pro.Benzinga's Edge Stock Rankings show Nvidia scoring in the 97th percentile for Growth and 93rd for Quality, underscoring its dominance in the global AI chip race even as geopolitical risks intensify.Read next:<ul> <li>Apple May See Fewer Searches In Safari, But Google CEO Sundar Pichai Insists AI Is Fueling Overall Query Growth: ‘Far From A Zero-Sum Game'</li> </ul>Photo courtesy: JRdes / Shutterstock</div></div></div>

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China has initiated a customs crackdown on Nvidia's AI chips, specifically targeting the H20 and RTX Pro 6000D models. This move follows directives from the Cyberspace Administration of China to halt orders of Nvidia products. Customs inspections are now extended to all advanced chips to prevent smuggling. Nvidia's CEO stated that the company anticipates zero revenue from China due to export restrictions. Despite regulatory challenges, Nvidia remains a leading chipmaker with a market cap of approximately $4.68 trillion, showing significant growth in shares over the past year.

- China has initiated a customs crackdown on Nvidia's AI chips, focusing on specific models designed for compliance with U.S. export controls.  
- The inspections aim to prevent Chinese companies from ordering these products, following regulatory guidance, and have expanded to include all advanced chips to combat smuggling.  
- Nvidia's CEO stated that the company anticipates zero revenue from China due to export restrictions, while the firm remains a leading player in the global AI chip market despite regulatory challenges.

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China Targets Nvidia's H20, RTX Pro 6000D Chips In Customs Crackdown As It Pushes To Cut Reliance On US Technology: Report