Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
Bessent Says U.S. Must Strengthen Supply Chains and Economic Security 
Japan Manufacturing Growth Accelerates in June as Orders Surge Despite Iran War Cost Pressures 
Wall Street Ends Mixed as Tech Stocks Struggle Ahead of Micron Earnings 
U.S.-Iran Diplomacy Helps Drive Gasoline Prices Down 15% From May Highs 
Australia Inflation Cools in May, But Core CPI Keeps RBA Rate Hike Risks Alive 
New Zealand Fast-Tracks Gold Mining as Industry Revival Gains Momentum 
Wall Street Slides as AI Stocks Tumble Following South Korea Tech Sell-Off 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
South Korea Remains MSCI Emerging Market Despite Reform Progress 
Australia Jobs Growth Strengthens Rate Hike Outlook 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
Asian Stocks Slip as Oil Rebounds Amid Fed Rate Hike Fears 
Singapore Inflation Stays Muted in May as Core CPI Misses Forecasts Ahead of MAS Review 
Nvidia Corporation (NASDAQ) saw its shares fall on Friday after reports emerged that Chinese regulators are encouraging local companies to buy artificial intelligence (AI) chips made in China rather than those produced by Nvidia, according to sources cited by Bloomberg.
The chipmaker's stock dropped about 3% in recent trading, as the report highlighted Beijing’s push to bolster its domestic semiconductor industry and reduce dependence on U.S. technology amid ongoing trade tensions.
Regulators Discourage Nvidia Chip Purchases
Chinese authorities are reportedly discouraging companies from purchasing Nvidia’s A800 and H800 chips, which are designed for developing and deploying AI models, sources familiar with the matter told Bloomberg. The move is part of China's effort to accelerate its semiconductor capabilities and cushion the impact of U.S. export restrictions on advanced technology.
Guidance, Not a Ban
The new policy is not an outright ban on Nvidia's chips, according to the sources. Instead, it is framed as guidance to promote domestic semiconductor solutions. Chinese regulators aim to support local AI startups without imposing strict prohibitions or exacerbating geopolitical tensions with the U.S.
By encouraging domestic companies to buy locally-made AI chips, Chinese officials hope to strengthen the country’s technology sector and reduce reliance on foreign suppliers. At the same time, they are cautious about impeding the growth of the burgeoning AI industry in China or igniting further conflict with U.S. policymakers.
No Comment from Nvidia or Chinese Ministries
Nvidia declined to comment when approached by Bloomberg. Additionally, China’s Ministry of Commerce, Ministry of Information and Technology, and Cyberspace Administration did not respond to Bloomberg's faxed requests for comment.
The reported shift in China's semiconductor policy comes as the global chip industry faces increasing scrutiny amid heightened U.S.-China trade tensions. Washington has imposed restrictions on advanced chip exports to China, which have affected American semiconductor companies such as Nvidia.
China's Push for Self-Reliance in Technology
China has been ramping up its efforts to develop its semiconductor industry in recent years, aiming to achieve self-reliance in key technologies, including AI chips. This move aligns with Beijing’s broader goal of reducing dependence on U.S. technology amid rising concerns over supply chain vulnerabilities and national security.
Nvidia, a leading provider of AI chips worldwide, has been impacted by these tensions and policies as the global semiconductor landscape continues to shift.
