New Delhi, Aug. 21 -- Beijing's decision to restrict sales of Nvidia's China-specific artificial intelligence processor came after US Commerce Secretary Howard Lutnick's remarks about chip exports that officials found "insulting", according to a report by the Financial Times (FT).

Chinese regulators have taken action to discourage domestic tech companies from purchasing the H20, a simplified processor commonly used for artificial intelligence in China.

The Cyberspace Administration of China (CAC), the National Development and Reform Commission (NDRC), and the Ministry of Industry and Information Technology (MIIT) responded to Lutnick's comments, made last month, the report said, citing people aware of the development.

"We don't sell th...