China has intensified its crackdown on semiconductor imports, deploying specialized customs inspection teams at major ports across the country in recent weeks, Azernews reports,according to a report by the Financial Times.

The inspections initially focused on ensuring that domestic companies comply with government guidelines discouraging the purchase of Nvidia's China-specific chips, developed to meet U.S. export restrictions. Citing sources familiar with the matter, the report noted that Chinese regulators have become increasingly concerned about the unauthorized flow of advanced AI chips into the country.

However, the scope of these checks has significantly broadened. Customs officials are now reportedly inspecting all types of advanced semiconductor products, not just those linked to Nvidia, in an effort to curb chip smuggling and unauthorized imports that may breach U.S. export control regulations.

This move comes amid an ongoing global tech rivalry between the U.S. and China, particularly in the area of artificial intelligence and high-performance computing. Advanced chips - such as those used in machine learning, data centers, and military technologies - have become a focal point in this geopolitical competition. China's tightened inspections suggest a growing determination to control its supply chain, ensure self-sufficiency, and reduce reliance on foreign technology that might be vulnerable to sanctions.

Analysts believe that the stricter enforcement signals a new phase in China's strategy: not just resisting U.S. pressure, but actively policing its own market to ensure that domestic firms comply with both local directives and international trade limitations.

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