Beijing has urged local companies to avoid using Nvidia Corp.’s H20 processors, particularly for government-related purposes, complicating the chipmaker’s attempts to recoup billions in lost China revenue after the Trump administration reversed an effective US ban on such sales.

Chinese authorities have urged local companies to avoid using Nvidia's H20 processors, particularly for government-related purposes, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The Chinese government has advised local companies against using Nvidia’s H20 chips, adding another hurdle to the chipmaker’s recovery plans in China. According to sources, local firms received directives cautioning against the use of H20s in government or national security-related work across state and private sectors.