Nvidia (NVDA.O) stated on Thursday that its products do not contain any remotely accessible or controllable 'backdoors.' A 'backdoor' typically refers to a hidden method of bypassing normal authentication or security controls. These statements follow inquiries from Chinese internet regulators regarding potential security concerns related to its computing chips, specifically the H20. Nvidia was asked to provide clarification on potential vulnerabilities and 'backdoor' risks. Previously, U.S. lawmakers have advocated for equipping advanced chips exported from the U.S. with 'tracking and location' functionalities. Experts in the field of artificial intelligence have revealed that Nvidia's 'tracking and location' and 'remote shutdown' technologies for computing chips have reached maturity. This news casts a shadow over the American chipmaker's sales prospects in China, just weeks after the U.S. revoked prior export restrictions. An Nvidia spokesperson said in a statement: 'Cybersecurity is of utmost importance to us. Nvidia's chips do not contain any 'backdoors' that would allow anyone to remotely access or control our products.' Previously, the White House and U.S. Congress had proposed adding location verification technology to chips to ensure they are not diverted to countries prohibited by U.S. export laws. However, these proposals have not become formal legislation, and no specific technical requirements have been issued. As a focal point in U.S.-China relations, Nvidia's position in China is under close observation. The U.S. banned the sale of H20 chips to China in April but recently lifted the ban this month. The H20 was specifically developed for the Chinese market in response to new export restrictions imposed by the U.S. on advanced AI chips in late 2023. Reuters reported that Nvidia had ordered 300,000 sets of H20 chips from TSMC due to strong demand. Earlier this month, Nvidia CEO Jensen Huang made a high-profile visit to China to demonstrate the company's commitment to the Chinese market, meeting with government officials and praising China's achievements in artificial intelligence. Nvidia's revenue in China reached $17.108 billion in 2024, a 66% year-over-year increase and a record high. In fiscal year 2025, China was Nvidia's second-largest sales region. However, if the U.S. bans the export of H20 to China, Nvidia's share of the Chinese data center market will significantly decrease, and the company is projected to lose $14 billion to $18 billion in revenue this year. The ongoing situation underscores the complex interplay between technological advancements, geopolitical tensions, and market access. The chip export restrictions highlight the delicate balance between national security concerns and economic opportunities for companies like Nvidia. The development and adaptation of chips like the H20 demonstrate the industry's agility in navigating evolving regulations and market demands.