On October 11, 2025, reports from the Financial Times and Reuters revealed that China has escalated the enforcement of its import restrictions on U.S. chips, specifically targeting NVIDIA's artificial intelligence processors at major ports. Chinese customs officials are conducting strict checks on semiconductor shipments, initially focusing on NVIDIA's H20 and RTX Pro 6000D chips, which were designed to comply with U.S. export controls. These inspections have reportedly expanded to include all advanced semiconductor products that breach U.S. export curbs. This development adds to the challenges NVIDIA faces in the Chinese market, where it has already seen lukewarm demand for its tailored AI chips. Compounding the pressure, the U.S. Senate passed legislation aimed at bolstering American competitiveness by curbing exports of advanced AI chips to China and other foreign adversaries. The legislation mandates that chipmakers like NVIDIA and AMD prioritize U.S. companies' access to their products. NVIDIA has expressed opposition to the bill, arguing that it addresses a nonexistent problem as the U.S. is its largest market. This confluence of events from both the U.S. and China creates significant geopolitical headwinds for NVIDIA, potentially impacting its revenue and operations in the key Chinese market.