Nvidia's CEO charms China with rock star status and commits to the market

Nvidia CEO Jensen Huang visited Beijing for the third time this year, solidifying his status as a rock star in the Chinese market. Huang met with key officials, including Vice Premier He Lifeng and Commerce Minister Wang Wentao, and praised Chinese AI models as "world class." His visit follows a US ban on Nvidia's H20 chips in China, which threatens the company's $17 billion China business. While Huang has successfully navigated the delicate US-China trade war, the company remains subject to the ups and downs of Sino-US tensions.

Nvidia CEO Jensen Huang visited Beijing for the third time this year, further cementing his company's presence in the Chinese market. Huang met with key officials, including Vice Premier He Lifeng and Commerce Minister Wang Wentao, and praised Chinese AI models as "world class." His visit comes amid a recent U.S. ban on Nvidia's H20 chips in China, which threatens the company's $17 billion China business.

Huang expressed his desire to ship more advanced chips to China than the H20 product, stating that technology is always evolving and that it is sensible to continue improving the products allowed for sale in China [1]. The U.S. reversed a ban that restricted Nvidia from sending its export control-compliant chip known as the H20 to China [1]. The H20 is a less-advanced semiconductor designed for AI workloads that comply with U.S. export restrictions to China.

The U.S. government has approved Nvidia to resume exports of its H20 AI computer chips to China, which is expected to have a major impact on Nvidia's business and technology relations between the U.S. and China [2]. The approval came after months of lobbying by Nvidia and other U.S. tech firms. CEO Jensen Huang also met with President Donald Trump and U.S. policymakers to advocate for the easing of restrictions.

The sudden export halt led to a USD 4.5 to 5.5 billion loss in sales for Nvidia, causing financial trouble as Chinese firms began turning to alternatives like Huawei. However, the new approval will expectedly boost the company and its supply chain [2].

Nvidia is expected to face supply issues in China due to pent-up demand for its H20 GPUs following a ban in the country. The company is readying to meet this demand, but supply constraints are anticipated [3]. Nvidia's decision to resume sales is expected to boost its revenue and market share in China, a crucial market that made up 13% of the company's sales in 2024 [4].

Nvidia's plan to resume H20 AI chip sales to China is part of a broader U.S.-China trade negotiation involving rare earth exports, confirmed by U.S. Commerce Secretary Howard Lutnick [5]. The resumption of H20 chip sales is tied to the trade negotiations that are presently ongoing between the U.S. and China, especially related to the resumption of the imports of rare earth elements from China to Washington.

References:
[1] https://www.cnbc.com/2025/07/16/nvidia-ceo-wants-to-sell-advanced-chips-to-china-after-h20-ban-lifted.html
[2] https://www.goodreturns.in/news/jensen-huang-announces-u-s-approval-for-nvidias-h20-ai-chip-exports-to-china-1442751.html
[3] https://www.ainvest.com/news/nvidia-faces-supply-constraints-china-weeks-long-gpu-ban-2507/
[4] https://www.cnn.com/2025/07/15/business/nvidia-resume-h20-chip-sales-to-china-intl-hnk
[5] https://www.fortuneindia.com/world/nvidias-h20-chip-sales-to-china-tied-to-us-china-rare-earth-deal-amid-rising-tech-tensions-report/124904