This week, the country's top internet watchdog summoned Nvidia reps over what it calls serious security risks tied to the H20 chipa product Nvidia designed specifically to meet U.S. export rules. State media pulled no punches either.

Chinese regulators have summoned Nvidia (NVDA) representatives over alleged security risks related to its H20 artificial intelligence chips, according to a statement on its website.

Nvidia must produce "convincing security proofs" to eliminate Chinese users' worries over security risks in its chips and regain market trust, a commentary published by China's state-run media People's Daily said on Friday.