The CEO of American chip maker Nvidia recently visited Beijing shortly after the US imposed new restrictions on the sale of AI chips to China.
According to state media-affiliated social media accounts, Jensen Fan’s unexpected visit was in response to an invitation from a trade agency.
China Central Television reported that Huang met with Ren Hongbin, the head of China’s Council to promote international trade.
The official English outlet of the Communist Party released a photo of Huang in Beijing, stating, “It’s three months since I promised to continue working with #China during my last visit.” The hashtag #OpportunityChina was included, previously used in a post promoting US-China exports.
This visit comes amidst a turbulent week for Nvidia. The recently announced US restrictions affect the shipment of the H20 DataCentre GPU, a specialized low-power version of Nvidia chips designed to comply with restrictions on sales to China under the Biden administration.
Amidst the ongoing race for AI dominance between the US and China, the US government informed Nvidia that the new rules aim to mitigate the risk of its products being utilized in Chinese supercomputers.
The company estimates that these new restrictions will cost around $5.5 billion (£4.2 billion) and experienced a 7% drop in its shares on Wednesday.
The tech industry has been under pressure due to US restrictions on high-tech supply to China and widespread tariffs. Nvidia’s shares decline is part of a broader trend in the sector which has seen many companies experiencing significant drops in recent weeks. Trump’s threats of separate tariffs on the global semiconductor industry further add to the uncertainty.
Following the announcement of the new Nvidia chip restrictions, semiconductor companies have pledged to invest up to $500 million in AI infrastructure in the US over the next four years.
Nvidia designs chips but outsources production to contractors like Taiwanese semiconductor manufacturers. TSMC, for instance, has committed to large-scale investment projects in the US, exempting them from tariffs. In response, the White House attributed Nvidia’s decision to “the Trump effect.”
Reportedly, Huang also met with Liang Wenfeng, the founder of Deepseek in Beijing, to discuss new chip designs for AI companies that would not trigger another US ban. Deepseek gained attention in January for its advanced AI chatbot developed with minimal investment, shaking up the tech industry and impacting global stock markets.
The US House of Representatives China Committee has raised concerns about Deepseek potentially using an export-controlled chip to power its AI app, posing a national security threat.
Huang has publicly stated that Nvidia is committed to advancing AI globally while complying with legal requirements and technological advancements under the Trump administration. He reassured reporters that the company will continue its progress in the field.
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Huang’s visit to Beijing created a buzz on social media in China and Taiwan. As a Taiwanese celebrity, he was welcomed by a large number of fans on his recent visit, generating excitement and reports about his activities.
The chaos caused by Trump’s tariffs has raised concerns among global markets and governments, including US allies. Amidst changing tariff rates and negotiations, the focus remains on reshaping trade agreements to address trade imbalances and economic concerns.
Trump’s recent talks with Japan indicate a strategic approach to trade negotiations with various countries, signaling a priority for the US administration in reshaping global trade relations.
Additional report by Jason Tzu Kuan Lu
Source: www.theguardian.com
