AsianFin -- A group of Chinese regulators has stepped in to discourage domestic technology companies from acquiring Nvidia’s H20 processor — a lower-tier AI chip widely used in China — following remarks made last month by Lutnick.

Speaking to CNBC on July 15, the day after the Trump administration lifted export controls on H20 sales, Lutnick said, “We don’t sell them our best stuff, not our second-best stuff, not even our third-best.”

Some senior Chinese officials reportedly found the comments “insulting,” prompting policymakers to explore measures to limit Chinese tech firms’ access to the chips. As a result, several companies either delayed or significantly scaled back their H20 orders, according to sources familiar with their plans.