Nvidia CEO's Strategic Visit to China Amidst Escalating U.S. Export Restrictions

Nvidia CEO Jensen Huang is scheduled to hold a media briefing in Beijing on July 16, 2025, marking his second visit to China this year. This trip underscores Nvidia's commitment to the Chinese market, which contributed $17 billion, or 13% of the company's total revenue in the last fiscal year.

Huang's visit comes amid escalating U.S. export restrictions on advanced AI chips to China, including Nvidia's H20 model, due to concerns over potential military applications. These restrictions have significantly impacted Nvidia's operations, leading to a projected $5.5 billion loss from unsellable inventory and disrupted sales channels.

In response to these challenges, Nvidia is developing a China-specific AI chip, a modified version of its Blackwell RTX Pro 6000, designed to comply with U.S. regulations. This new chip is expected to launch in September 2025, pending clearance from U.S. authorities. Despite reduced functionality, Chinese clients have tested and shown interest in the chip, largely due to the cost of switching from Nvidia’s CUDA ecosystem.

Huang has been vocal about his opposition to the export controls. In a May 2025 earnings call, he stated that the U.S. export control policy on AI chips to China was "clearly wrong," emphasizing that China's AI development would continue due to its abundant talent. He argued that shielding Chinese chipmakers from U.S. competition only strengthens them abroad and weakens America's position.

U.S. lawmakers have expressed concerns about Huang's engagement with Chinese entities. A bipartisan group of senators urged him to avoid interactions with companies suspected of undermining U.S. chip export controls or collaborating with China's military or intelligence sectors. They emphasized that such engagements could legitimize entities on the U.S. restricted export list or reveal weaknesses in current export policies.

Despite growing competition from domestic companies like Huawei, Nvidia’s chips remain in high demand in China due to the popularity of its CUDA computing platform. Nvidia’s market value recently surpassed $4 trillion, cementing its status as a central player in the global AI race.

China is advancing its AI capabilities by planning to construct 39 AI data centers, primarily in Xinjiang and Qinghai, equipped with over 115,000 high-performance Nvidia H100 and H200 GPUs. This initiative raises questions about the effectiveness of existing export controls and the potential need for tighter enforcement.

Huang's upcoming visit to Beijing highlights Nvidia's strategic efforts to navigate the complex landscape of U.S.-China relations and maintain its significant presence in the Chinese market amidst escalating export restrictions and geopolitical tensions.