Chinese regulators have prohibited TikTok-owner ByteDance from deploying Nvidia chips in its new data centres, according to a report by The Information. The move marks the latest step in Beijing’s efforts to reduce reliance on U.S. technology amid escalating semiconductor tensions.

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Background

ByteDance reportedly purchased more Nvidia chips than any other Chinese firm in 2025, aiming to secure computing power for its billion-plus users amid fears that the United States could limit supply.

The ban reflects China’s push for self-reliance in AI chips, encouraging local firms to adopt homegrown processors instead of foreign hardware. In August, regulators reportedly asked domestic companies to halt new orders of Nvidia AI chips, further accelerating the shift toward domestic alternatives.

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Regulatory Pressure

According to sources cited by Bloomberg, Chinese authorities now require new data centre projects with state funding to exclusively use domestically-made AI chips. This policy aligns with China’s broader strategy to develop a self-sufficient AI ecosystem and reduce dependence on U.S. imports.

A Nvidia spokesperson told Reuters:

“The regulatory landscape does not allow us to offer a competitive data centre GPU in China, leaving that massive market to our rapidly growing foreign competitors.”

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U.S. Export Controls

Washington has restricted sales of Nvidia’s most advanced chips to China, allowing only scaled-down versions such as the H20. Nvidia even introduced a China-specific chip, but demand has been weak as major tech firms hesitated to place orders under regulatory pressure.

Earlier this month, following talks between President Donald Trump and Chinese President Xi Jinping, Trump stated the U.S. would let China access Nvidia chips “but not the most advanced” models.

Despite these restrictions, Nvidia stock remained up 1.8% in midday trading, reflecting continued investor confidence.

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Implications

The ByteDance ban underscores:

• China’s intensified push for AI chip self-sufficiency
• Growing trade tensions with the U.S. over semiconductors
• Potential market challenges for Nvidia in one of the world’s largest tech markets

The policy signals that foreign chipmakers may face increasing hurdles in China as the country seeks to domestically dominate AI infrastructure.