Chinese customs officials were sent to major ports to carry out strict checks on semiconductor shipments, the Financial Times report said on Friday, citing unidentified sources.
The newspaper said the inspections initially focused on Nvidia’s H20 and RTX Pro 6000D processors, which were designed to comply with US export rules.
The checks have since expanded to include all advanced semiconductor products that could breach US export restrictions, according to the report.
Access to Nvidia’s high-end chips has been a major point of tension between the United States and China.
The Financial Times previously claimed that about $1 billion worth of Nvidia’s top AI chips were smuggled and sold in China between May and August.
Nvidia launched a new AI chip, the RTX6000D, tailored for China’s market, Reuters reported last month, but demand has been muted, with some leading technology firms refraining from placing orders.
In August, US President Donald Trump mentioned the possibility of allowing Nvidia to sell more advanced chips in China.
Chinese authorities have accused Nvidia of breaching anti-monopoly laws and have ordered major tech firms to stop buying its AI chips and cancel previous orders, the Financial Times reported in September.
Despite recent gains by Huawei and other domestic chipmakers, engineers at Chinese tech companies say Nvidia’s processors still outperform local alternatives.