Jensen Huang , the co-founder and CEO of Nvidia , has recently made headlines with his visit to China, where he aimed to advocate for his company’s interests amidst increasing restrictions from the U.S. administration. At the end of last week, Huang met with Donald Trump to discuss ways to navigate these limitations, particularly concerning Nvidia’s operations in a country where it has significant revenue streams. In the last fiscal year, which ended on January 26, 2025, China accounted for approximately 13% of Nvidia’s total revenue, translating to about $17 billion —making it the company’s third-largest market, behind the U.S. and Taiwan .
Huang is evidently committed to preserving Nvidia’s foothold in China, as showcased by his recent remarks at the International Exhibition of the China Supply Chain in Beijing. His statement carries weight, especially given the current geopolitical climate surrounding technology companies.
Jensen Huang’s Strategic Diplomacy
During his speech, Huang praised China’s open artificial intelligence models , specifically mentioning Deepseek , Qwen , and Kimi . He stated, “These are the best reasoning models in the world today. They are very advanced.” This endorsement wasn’t casual; it comes at a crucial time for Nvidia, showcasing his strategic approach to maintaining a presence in China’s booming tech industry. Huang’s remarks resonate with several reports that highlight the competitiveness of these Chinese AI models , making his praise both timely and significant.
Huang’s commendation of these models is crucial at a transformation point for Nvidia. The company has long relied on Chinese partnerships for the sale of its GPUs . His recent talks with Trump have reportedly led to promising changes; Nvidia appears poised to resume selling its H20 GPU to Chinese clients shortly. Despite having some limitations compared to its high-performance counterparts, the H20 chip has received a positive initial reception, with sales increasing by 50% quarter-over-quarter since its launch in mid-2024.
The approval of the H20 chip’s sale in China initially seemed promising, but complications arose due to new restrictions from the U.S. Department of Commerce.
However, circumstances have not been entirely favorable for Nvidia. Just months after the promising news, the U.S. Department of Commerce imposed renewed restrictions on the H20’s export, significantly affecting its access to Chinese markets. With impending competition, Huang’s situation becomes even more precarious, particularly against the backdrop of Huawei’s resurgence in the semiconductor space.
Mere days after the latest sanctions were implemented, Huawei announced its Ascend 920 GPU —a strategic move that aims to fulfill the demand for AI capabilities left unaddressed by Nvidia in the Chinese market. The Ascend 920 is designed utilizing 6nm integration technology , a collaborative effort between Huawei and SMIC (Semiconductor Manufacturing International Corporation). While detailed specifications remain under wraps, expectations are high that this new chip will leverage advanced techniques like Multiple Patterning and promises an impressive 4 TB/s transfer speed for the memory subsystem, thanks to the incorporation of HBM3 chips .
Image | Nvidia
More information | SCMP
In Xataka | The U.S. gives Huawei a great opportunity: to get its new chip for AI with the Nvidia market in China
As the landscape continues to shift, it is evident that Huang’s diplomatic engagement with both U.S. and Chinese officials is crucial for Nvidia’s future. The dynamics of the technology sector are rapidly evolving, and the interplay between regulatory constraints and competitive advancements will significantly shape the company’s trajectory in China. For Nvidia, solidifying ties with Chinese enterprises remains vital—especially as its competitors strengthen their footholds in this lucrative market.