China steps up customs crackdown on Nvidia AI chips, FT reports

(Reuters) -China has ramped up enforcement of its chip import restrictions, aiming to reduce domestic technology companies' dependence on U.S. products such as Nvidia's artificial intelligence processors, the Financial Times reported on Friday. Reuters could not immediately verify the report. Teams of customs officers have been mobilized at major ports across the country in recent few weeks to carry out stringent checks on semiconductor shipments, the newspaper said, citing people with knowledge of the matter. The inspections were initiated with the aim of ensuring local companies halt their purchases of China-specific Nvidia chips following guidance from regulators, according to the FT report. China customs and Nvidia did not immediately respond to Reuters' request for comment. China's regulators, led by the Cyberspace Administration of China (CAC), instructed major tech firms including ByteDance and Alibaba in mid-September to halt orders and testing of Nvidia products, the report said, adding that customs checks have been widened to include all advanced semiconductor products. (Reporting by Ananya Palyekar in Bengaluru; Editing by Mrigank Dhaniwala and Sherry Jacob-Phillips)

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