Beijing’s Enforcement of Energy Rules Could Hit Nvidia’s China Sales, Report Says

Nvidia’s (NVDA) sales in China could reportedly take a hit if Beijing implements energy efficiency rules more strictly.

The National Development and Reform Commission, China’s top economic planner, is advising Chinese groups to use chips that meet stricter requirements in new data centers and when expanding existing facilities, the Financial Times reported. The rule, introduced last year, could threaten Nvidia’s sales of its best-selling H20 chip, which is less powerful than Nvidia’s latest chips and tailored to meet U.S. export restrictions, the report said.

The H20 chip doesn’t currently meet the commission’s new rules, the report said, citing documents the FT reviewed and people with knowledge of the matter.

“Our products provide superb energy efficiency and value in every market we serve,” an Nvidia spokesperson said in a statement to Investopedia. “As technology moves rapidly, export control policy should be adjusted to allow U.S. firms to offer the most energy efficient products possible, while still achieving the Administration’s national security goals.”

China represents one of the biggest markets for Nvidia, whose computer chips have helped fueled the world’s artificial intelligence boom. Its shares fell over 4% in early trading Wednesday, and have lost close to 15% so far in 2025.