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NVIDIA shares (Nvda-1.50%)) fell by around 6% during noon negotiations on Wednesday after a report that its activities in China could be negatively affected by the new rules of the government. The action was negotiated around $ 113.48 to 3:20 p.m. New York time.
The National Commission for Chinese Development and Reform has asked the country’s companies to use energy -efficient fleas in new data centers and those that are widened, the Financial time reported, citing documents examined by the publication.
The H20 chip, which was developed by Nvidia to comply with American export controls, would not meet the new requirements introduced by the economic planning agency. The leaders of Nvidia would have asked for a meeting with Zheng Shanjie, the chairman of the committee, to discuss the rules. He would also have adjusted the chip to respect the rules of energy efficiency.
People have told Financial Times that companies like Alibaba (Baba-2.62%)) and tence (Tcehy-2.29%)) were informed by the Commission not to buy the less powerful Nvidia processors. However, people have said that H20 sales are not currently affected because the rules have not yet been strictly applied. Meanwhile, Chinese technology giants have increased orders for H20 fleas after the Chinese AI startup Deepseek sent Shock waves through industry With its R1 reasoning models in January.
China and Hong Kong are the fourth market of the flea manufacturer, which represents approximately 13% of its annual income – or 17.1 billion dollars – for the year 2025, according to Nvidia’s Form 10-K.
“Our products offer superb energy efficiency and value on each market that we serve,” Nvidia said in a press release to the Financial Times. “While technology is evolving rapidly, the export control policy should be adjusted to allow companies to offer us the most energy efficient products possible, while achieving the national security objectives of the administration.”