Beijing has urged local companies to avoid using Nvidia Corp.’s H20 processors, particularly for government-related purposes, complicating the chipmaker’s attempts to recoup billions in lost China revenue after the Trump administration reversed an effective US ban on such sales.

Beijing is putting pressure on tech companies including Alibaba and ByteDance over their orders of Nvidia’s H20 artificial intelligence chips, complicating the US chipmaker’s business in China after striking an export arrangement with the Trump administration.

Chinese authorities are discouraging the use of Nvidia's H20 chips for government and national security purposes, impacting sales in China. This comes amidst calls for local tech companies to justify their chip purchases,