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US senators warn Nvidia CEO about upcoming China trip - Reuters
ByAinvest
Friday, Jul 11, 2025 7:32 pm ET1min read
US senators warn Nvidia CEO about upcoming China trip - Reuters
U.S. senators have sent a letter to Nvidia CEO Jensen Huang, urging him to refrain from meeting with certain companies during his upcoming trip to China. The bipartisan group, consisting of Republican Senator Jim Banks and Democratic Senator Elizabeth Warren, expressed concern that Huang's visit could legitimize entities working closely with the Chinese military or intelligence bodies, potentially undermining U.S. chip export controls.The senators' letter, dated July 1, 2025, warned Huang against engaging with companies suspected of circumventing U.S. export controls or those involved in China's military or intelligence operations. They also cited Nvidia's plans to launch a cheaper version of its Blackwell AI chips for the Chinese market, stating that this could accelerate China's military modernization efforts [1].
Nvidia's spokesperson responded by emphasizing the company's commitment to setting global technology standards and encouraging nations to use U.S. technology. However, the senators' concerns highlight the growing tension between U.S. export control policies and the global demand for advanced AI hardware.
The bipartisan consensus on U.S. export controls for advanced AI hardware has been a contentious issue, with some companies, including Nvidia, facing potential revenue reductions due to compliance costs. Last month, Reuters reported that a senior U.S. official accused the AI firm DeepSeek of aiding China's military and intelligence operations, further fueling concerns about the export of sensitive technology [2].
Nvidia's new research facility in Shanghai has also raised eyebrows among U.S. lawmakers, who worry that the facility could support China's AI and chip industries. The senators' letter cited this facility as an example of Nvidia's actions that could bolster China's capabilities.
The situation underscores the delicate balance between promoting U.S. technological superiority and adhering to strict export control policies aimed at preventing the transfer of sensitive technology to adversaries. As Nvidia navigates these challenges, investors and financial professionals will closely monitor the company's compliance with U.S. regulations and its strategic decisions regarding international markets.
References:
[1] https://finance.yahoo.com/news/us-senators-warn-nvidia-ceo-190255532.html
[2] https://www.newsmax.com/finance/streettalk/nvidia-jensen-huang-china/2025/07/11/id/1218470/
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