As Nvidia's H20 artificial intelligence (AI) chips become a focal point in US-China tech competition, Beijing is taking a cautious and increasingly assertive approach toward their use domestically. The move underscores China's broader strategy to reduce reliance on foreign technology while strengthening its own semiconductor industry.

Kyle Bass, Hayman Capital founder and CIO, joins 'Squawk Box' to discuss the impact of Trump-Putin summit on China, thawing of relations between India and China, state of U.S.-China relations, President Trump's decision to allow Nvidia and AMD to sell chips to China,

NVIDIA Corporation (NASDAQ:NVDA) is one of the top tech stocks with a strong return on equity. On August 10, it was reported that the company had agreed to pay 15% of its Chinese revenues to the US government as part of an agreement to secure export licenses.

China has reportedly urged local companies to not buy American semiconductors, especially those made by Nvidia and AMD. The curbs come weeks after Donald Trump lifted the export ban on Nvidia's H20 chips to China.