Amid ongoing U.S.-China trade tensions, Jensen Huang, CEO of Nvidia, has returned to China after three months. Earlier on January 19, the day before President Trump’s inauguration, Huang visited China and delivered a speech on artificial intelligence (AI) at Nvidia’s Beijing branch.
His visit to Beijing comes at the invitation of the China Council for the Promotion of International Trade (CCPIT), marking a critical moment for Nvidia as it navigates its role in the escalating tech rivalry between the U.S. and China.
In line with ongoing U.S. government efforts to encourage domestic semiconductor production, Nvidia announced on April 14 that it plans to produce AI infrastructure worth up to $500 billion in the U.S. over the next four years. This ambitious plan includes manufacturing AI chips and developing hardware necessary for AI applications, such as supercomputers, within the United States.
However, Nvidia’s operations face challenges due to recent U.S. government export controls. On April 15, Nvidia disclosed that exporting its low-spec AI semiconductor H20 to China now requires approval from the Department of Commerce in documents submitted to the U.S. Securities and Exchange Commission (SEC). The company anticipates a loss of $5.5 billion in its fiscal first quarter (February to April) due to costs associated with inventory handling and restricted sales.
The Wall Street Journal reported that “Nvidia finds itself caught between the U.S. and China, competing for AI supremacy.” Despite strong demand for even lower-spec chips, these export restrictions are seen as a threat to Nvidia’s growth prospects amid the ongoing trade war.
Nvidia’s position is further complicated by its role as a negotiation card in U.S.-China trade relations. The Trump administration’s focus on maintaining technological superiority has led to stringent export controls aimed at limiting China’s access to advanced technology. These measures are part of broader efforts to protect national security and maintain economic dominance.
China’s ambition to achieve self-sufficiency in semiconductor manufacturing adds another layer of complexity. The country has been investing heavily in its domestic industry to reduce reliance on foreign technology—a move that intensifies competition with U.S. companies like Nvidia.
As Jensen Huang engages with Chinese officials during his visit, Nvidia must balance its business interests with geopolitical realities. The outcome of these interactions could have significant implications for both Nvidia’s future operations and broader U.S.-China tech relations.
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