06:25 AM EDT, 08/21/2025 (MT Newswires) -- Nvidia ( NVDA ) is facing restrictions in China on sales of its H20 processor after US Commerce Secretary Howard Lutnick made comments that officials considered "insulting," the Financial Times reported Wednesday, citing people familiar with the matter.

Regulators, including the Cyberspace Administration of China, the National Development and Reform Commission, and the Ministry of Industry and Information Technology, reportedly urged local tech firms to scale back or cancel H20 orders.

Lutnick told CNBC on July 15 that the US does not sell China its "best" or even "second-best" chips, and said the aim was to keep developers reliant on the American technology stack, the Financial Times reported.

Senior Chinese officials viewed those remarks as offensive, leading regulators to issue informal guidance to companies such as ByteDance and Alibaba ( BABA ) to stop new H20 purchases, the media outlet reported.

MIIT also held private discussions with tech executives to reinforce CAC's instructions, while traders said the restrictions prompted some firms to cut or delay orders, the news outlet reported.

Despite the shift, Nvidia ( NVDA ) asked TSMC to restart H20 production lines after Chinese clients showed renewed interest during CEO Jensen Huang's recent trip, the Financial Times reported.

Nvidia ( NVDA ) and Chinese regulators did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)