New Delhi, Aug. 12 -- China has advised local companies to refrain from using Nvidia Corp.'s H20 processors, especially for government-related work. This move complicates the chipmaker's efforts to recover billions in lost revenue from China and challenges the Trump administration's efforts to convert those sales into a benefit for the US government.

In the last few weeks, Chinese authorities have issued notices to various companies discouraging the use of less advanced semiconductors. The notice was directed against the use of H20 chips for any government or national security-related work by state enterprises or private companies, according to a report by Bloomberg News citing people aware of the development.

Some of these notices incl...