Beijing blocked the RTX 5090D V2 gaming chip at customs checkpoints last Friday, coinciding with Jensen Huang's visit to China. This restriction targets hardware specifically designed to meet US export controls. By limiting access to these modified components, Chinese authorities aim to force a shift toward domestic silicon providers during a period of intense technological competition.

Domestic firms like Huawei and Cambricon stand to benefit from this protectionist stance. Huawei already expects to lead the local AI chip market this year, with sales projected to climb by at least 60 per cent. This move follows previous blocks on Nvidia's H200 and H20 models, despite US approval for sales to firms like Alibaba and Tencent.

Financial implications for the semiconductor giant are substantial. Nvidia previously generated over $17bn in the Chinese market during the 2025 fiscal year. Morgan Stanley predicts the Chinese AI chip market will reach $67bn by 2030, with domestic suppliers expected to control 86 per cent of that total value. Beijing is actively building a self-sufficient ecosystem to replace American technology.