Chinese customs officials have been dispatched to key ports to conduct strict checks on semiconductor shipments, according to a report in the Financial Times. The newspaper said on Friday that the inspections initially targeted Nvidia’s H20 and RTX Pro 6000D, chips designed to adhere to U.S. export controls.

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The report stated that the checks have been extended to include all advanced semiconductor products that breach U.S. export curbs. China customs officials did not immediately respond to a Reuters request for comment, while an Nvidia spokesperson declined to comment on the report.

The extent to which China has access to Nvidia’s world-leading chips has been a key point of friction between the U.S. and China. In August, President of the United States Donald Trump flagged the possibility of allowing Nvidia to sell more advanced chips in China.

A previous Financial Times report indicated that at least $1 billion worth of Nvidia’s top AI chips were smuggled and sold in China in the three months from May. Authorities in China have previously accused Nvidia of violating anti-monopoly law and, in September, ordered top tech firms to halt purchases of Nvidia’s AI chips and cancel existing orders, according to the FT.

Reuters reported last month that Nvidia has a new AI chip, the RTX6000D, tailored for the Chinese market, but it has seen only lukewarm demand with some major tech firms opting not to place orders. Despite advances by Huawei and other Chinese chip firms in recent years, people involved in engineering operations at Chinese tech firms say Nvidia’s chips perform better.

Source: IndexBox Market Intelligence Platform