China Banned Nvidia’s China-Only Gaming Chip While Jensen Huang Was in Beijing

Key Takeaways

• China banned the RTX 5090D V2, a chip Nvidia built specifically to comply with US export rules, while Jensen Huang was in Beijing with Trump
• It is the third ban on an RTX 5090-series chip and the first imposed by China, which was using the card as an AI backdoor via Blackwell base
• Nvidia sold $17B in China in fiscal 2025, while Huawei’s chip sales are up 60% as Beijing pushes full semiconductor independence

Nvidia stock has been driven by AI demand for most of the year. But China remains one of the company’s biggest pressure points. Last week, while CEO Jensen Huang was in Beijing during President Donald Trump’s visit, Chinese authorities reportedly blocked Nvidia’s RTX 5090D V2 from entering the country. The chip had been designed specifically to comply with US export restrictions. Instead of easing tensions in the China AI chip war, it ended up getting caught in the middle of it.

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Why China Banning the RTX 5090D V2 Puts Nvidia’s $17B China Sales at Risk

The RTX 5090D V2 was Nvidia’s latest attempt to keep selling high-end chips in China without violating US rules. Compared to the standard RTX 5090, the China-only version came with lower AI performance and reduced memory capacity. Nvidia marketed it toward gamers and 3D creators. But reports suggest AI developers were also using the card because it still provided access to Nvidia’s Blackwell architecture.

According to reports, Chinese customs added the RTX 5090D V2 to a restricted imports list on May 15. The restriction reportedly took effect while Huang was still in the country. This is now the third restriction involving an RTX 5090-series product, although previous bans came from the US side.

Nvidia’s China Business is Getting Harder to Protect

The Nvidia China ban also points to a bigger shift happening in the market. Chinese regulators are increasingly pushing local companies toward domestic hardware instead of relying on US suppliers. Huawei chips have become a major part of that strategy, with local AI firms gradually adopting Chinese alternatives as access to Nvidia products tightens.

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Nvidia generated more than $17 billion in revenue from China in fiscal 2025, according to company filings. Much of that came from export-compliant products such as the H20. But even those products have faced delays and restrictions despite receiving approval from Washington.

Morgan Stanley estimates China’s AI chip market could reach $67 billion by 2030. Domestic suppliers are expected to control most of it. Without the RTX 5090D V2, Nvidia’s most advanced gaming GPU officially available in China is now the RTX 5080.

Nvidia stock has mostly held up through the latest restrictions. But investors are still watching how much further the company’s access to China could tighten.

Huang said during a Bloomberg interview last week that he believes “over time, the market will open.” For now, Nvidia is still trying to figure out where the line is.

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