.S. chipmakers are getting the boot from China.

The Chinese government reportedly has issued guidance requiring state-funded data center projects to use only domestically made AI chips, according to Reuters. Regulators in the country have ordered data centers that are less than 30% built out to remove any imported chips installed and to cancel all purchasing plans.

Some projects were halted before they began, Reuters reported, including one facility that had planned to deploy Nvidia chips.

The directive would limit the possibility for U.S. firms – namely, Nvidia — to gain market share in the country. It’s also only the latest governmental move restricting advanced AI chips from being sold in China.

On Tuesday, the Trump administration said it would not allow Nvidia to sell its Blackwell chips in China for now. “That's not something we're interested in selling to China at this time," White House spokeswoman Karoline Leavitt said in a press conference.

China has also previously discouraged local tech giants from purchasing Nvidia’s H20 chips.

And caught in the crossfire of these restrictions, Nvidia is not happy about it: CEO Jensen Huang said in late October that the company once held 95% market share in China, and now holds none. Huang told reporters last week at the APEC CEO Summit in South Korea that “It’s in the best interest of America to serve that China market.”

Still, Nvidia’s chips are in high demand in the country. In July, the Financial Times reported that at least $1 billion worth of the company’s AI chips had been illegally smuggled into China. Nvidia said that patchwork data centers are a “losing proposition” due to the support and services that they require.