NVIDIA CEO heads to China as US lawmakers issue warnings
What's the story
NVIDIA CEO Jensen Huang will host a media briefing in Beijing on July 16, the company has confirmed. This will be Huang's second visit to China after an April trip where he emphasized the importance of the Chinese market. The visit comes amid ongoing US-China tensions over technology exports and military concerns.
Export limitations
US has restricted export of NVIDIA's advanced AI chips
Since 2022, the US government has restricted the export of NVIDIA's most advanced chips to China over fears they could be used for military purposes. Earlier this year, a ban was also imposed on selling NVIDIA's H20 artificial intelligence chips to China. This was previously NVIDIA's most powerful AI chip approved for sale in China. In the last fiscal year, China contributed $17 billion in revenue for NVIDIA, accounting for 13% of its total sales.
Diplomatic concerns
Huang receives letter from US senators
Huang's upcoming visit has drawn attention from both the US and China. A bipartisan pair of US senators recently wrote to Huang, urging him not to meet with companies working with military or intelligence agencies in China. They also requested that he avoid any interactions with entities on the United States's restricted export list.
Market dynamics
Despite competition from Huawei, NVIDIA remains in demand
Despite facing stiff competition from Chinese tech giant Huawei and other graphics processing unit manufacturers, NVIDIA continues to be in high demand. Chinese companies, including major tech firms, are still keen on NVIDIA chips due to their computing platform known as CUDA. Huang has always emphasized China as an important market for NVIDIA's growth, despite the challenges posed by US export restrictions and rising competition from local firms.