Nvidia on Sunday forcefully denied new accusations from Chinese state media that its H20 artificial-intelligence chips pose national-security risks for China, calling the claims false and reiterating that its products contain no “backdoors” or remote-shutdown functions.

The criticism came from Yuyuan Tantian, a WeChat account affiliated with state broadcaster CCTV, which published a post saying the H20 chips were “neither technologically advanced nor environmentally friendly” and alleging they could perform functions such as “remote shutdown” through a hardware backdoor.

The article concluded with a consumer warning: “When a type of chip is neither environmentally friendly, nor advanced, nor safe, as consumers, we certainly have the option not to buy it.”

A Nvidia spokesperson told CNBC in response that cybersecurity is a core priority and that “NVIDIA does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.” The company earlier rejected similar accusations, including suggestions that the chips contain a so-called “kill switch,” and reiterated those denials again in comments over the weekend.

The H20 chip was developed as a China-compliant product after U.S. export restrictions in late 2023 barred the sale of Nvidia’s most powerful accelerators. The chip is a less advanced alternative to Nvidia’s flagship models, such as the H100 and B100; it was designed so the company could legally serve the Chinese market while complying with U.S. rules. In April, the Trump administration briefly banned H20 exports to China, but the ban was reversed in July after intensive lobbying and high-level discussion, including interventions by Nvidia CEO Jensen Huang. After the reversal, licenses to ship the H20 resumed, although the episode left lingering political and regulatory sensitivities on both sides.

Nvidia has faced real financial pain from the disruption: the company took a $4.5 billion writedown on unsold H20 inventory in May and has said its top-line guidance for the July quarter would have been about $8 billion higher without the export restrictions. Despite the backdrop, Nvidia’s shares have held up: they closed at $182.70 on Friday, up around 1% for the day and roughly 36% year-to-date.

Chinese authorities have also taken a formal interest. Beijing’s cyberspace regulator summoned Nvidia for questioning amid concerns over alleged backdoors and has publicly pressed the company to provide convincing security assurances. State outlets such as People’s Daily have echoed the demand that Nvidia demonstrate the chips are safe if it hopes to rebuild trust with Chinese buyers.

Accusations Pose Risk to Nvidia’s China Market Strategy and Broader U.S.–China Tech Diplomacy

Analysts believe the escalating dispute over Nvidia’s H20 AI chips has the potential to reverberate far beyond a single product line, threatening the company’s competitive position in one of its most important markets while adding new complexity to the ongoing U.S.–China technology standoff.

Chinese state media’s framing of the H20 as “neither environmentally friendly, nor advanced, nor safe” is not only a public relations blow but could also influence procurement decisions in both the public and private sectors in China. Given the country’s growing emphasis on indigenous chip development and technology self-reliance, the allegations — including the claim of a potential “remote shutdown” hardware backdoor — feed into a broader narrative that foreign-made chips pose security vulnerabilities. Even if Nvidia has firmly denied these accusations, the perception alone could impact buyer confidence, especially in strategic industries like defense, telecommunications, and AI research, where trust in the supply chain is paramount.

For Nvidia, which has hoped to resume H20 shipments to China after the Trump administration lifted a prior ban, this is a delicate balancing act. CEO Jensen Huang has backed Trump’s broader tech policies while lobbying for export licenses that would allow Nvidia to sell more advanced chips to the Chinese market. His argument that U.S.-made chips becoming the global AI standard strengthens American influence is now challenged by Beijing’s messaging, which portrays the H20 as a compromised, second-tier product compared to Nvidia’s flagship H100 and B100 chips.

The timing of these accusations is particularly significant as Chinese officials push for the U.S. to ease export restrictions on high-bandwidth memory chips ahead of a possible Trump–Xi summit. Nvidia’s position in China and the political optics of U.S. tech dominance could become part of the negotiating equation. If Chinese buyers scale back purchases, either in response to political pressure or over perceived security risks, Nvidia risks losing market share to domestic competitors such as Huawei’s Ascend series or other state-backed chipmakers.

Economically, Nvidia has a lot to lose. China is one of Nvidia’s largest markets, and the company has already taken a $4.5 billion writedown on unsold H20 inventory this year, warning that July-quarter revenue would have been $8 billion higher without export restrictions. Any further contraction in Chinese sales could weigh heavily on its growth trajectory, particularly if the slowdown coincides with intensified domestic competition in the U.S. and Europe.

Nigeria’s non-oil exports grew sharply in the first half of 2025, reaching $3.225 billion — a 19.59% rise from the $2.696 billion recorded in the same period of 2024, according to fresh data from the Nigerian Export Promotion Council (NEPC).

The figures, announced in Abuja on Sunday by NEPC Director-General Nonye Ayeni during the presentation of the H1 2025 Non-Oil Export Performance Report, show that export volumes also climbed to 4.04 million metric tonnes, up from 3.83 million metric tonnes in H1 2024.

The performance builds on a strong first quarter, when exports hit $1.791 billion, up 24.75% from $1.436 billion in Q1 2024. Volumes for that period surged 24.3% to 2.416 million metric tonnes, suggesting the momentum is more than seasonal.

Ayeni said the scope of products leaving Nigeria’s shores continues to widen. In H1 2025, 236 distinct products were exported, up 16.83% from 202 products a year earlier. These ranged from agricultural commodities and extractive industry products to manufactured goods and semi-processed items.

She highlighted a slow but steady shift away from a purely agricultural export base toward higher-value semi-manufactured goods, which fetch better prices on the international market. Cocoa beans retained its top spot in the export mix, accounting for 34.88% of total export value, compared with 23.18% in H1 2024. Urea and fertilizer products ranked second at 17.65%, up from 13.78% last year.

AfCFTA and value addition drive growth

Ayeni credited the African Continental Free Trade Area (AfCFTA) with boosting Nigeria’s export prospects by opening new markets across the continent and lowering tariff barriers. This, she said, has encouraged more Nigerian exporters to explore opportunities beyond traditional partners.

The NEPC chief also pointed to a shift in export strategy: more businesses are investing in product transformation before shipment, leading to higher returns.

“The non-oil export of Nigerian products is gradually diversifying from traditional agriculture exports to semi-manufactured products,” she noted.

Ayeni said the council’s intervention programmes — from training on quality standards, packaging, and certification to guidance on export documentation — have made Nigerian products more competitive abroad. These initiatives, she explained, have been particularly important in meeting the standards of emerging markets such as India, Brazil, and Vietnam, which, along with several African nations, have driven much of the recent demand.

The export gains align with President Bola Tinubu’s Renewed Hope Agenda and the Ministry of Industry, Trade, and Investment’s push for a more diversified, resilient economy. Ayeni reaffirmed NEPC’s readiness to deepen collaboration with stakeholders to further boost export value and volume.

She said the combination of market expansion under AfCFTA, rising global demand for value-added goods, and government-backed capacity building has created the conditions for sustained growth in non-oil exports — a sector long seen as critical to reducing Nigeria’s reliance on crude oil revenues.

However, experts warn that while the latest figures are promising, they are not yet enough to transform Nigeria’s economic fundamentals. The country’s import dependence — especially for refined petroleum products, machinery, pharmaceuticals, and key industrial inputs — continues to offset export earnings. This means that any trade balance improvement could be quickly eroded if global oil prices dip or domestic manufacturing fails to scale up.

Additionally, the volatility of the naira remains a pressing concern. The recent export boost has provided some foreign exchange inflows, but sustained stability will require consistent export performance, diversification into higher-value goods, and a clear fiscal strategy to reduce reliance on foreign debt. Analysts stress that without long-term reforms — including infrastructure upgrades, energy reliability, and streamlined export procedures — the momentum could fade.

Overall, the export gains mark a rare positive note for Nigeria’s economy in 2025, offering policymakers a window to reinforce currency stability, encourage industrialization, and reshape the nation’s trade profile. The challenge will be ensuring that this short-term progress becomes the foundation for sustained growth, rather than another fleeting bright spot in an otherwise volatile economy.