Nvidia chief executive Jensen Huang has travelled to China for high-level talks, despite mounting U.S. restrictions on the company’s chip exports under former President Donald Trump.
Huang’s visit, seen as highly symbolic, comes as trade tensions between the U.S. and China escalate. The U.S. has imposed up to 145% tariffs on most Chinese goods, with China retaliating with 125% tariffs on American exports.
In addition to tariffs, Trump and President Joe Biden have tightened restrictions on advanced semiconductor exports, particularly those used in training artificial intelligence systems. Nvidia had developed the H20 chip specifically to comply with U.S. export controls. Still, the company revealed on Tuesday that it now expects a $5.5bn (£4.1bn) revenue hit after the Biden administration announced that export licences will also be required for the H20.
Following the announcement, Nvidia’s share price dropped 6.9% on Wednesday, although the company remains one of the world’s most valuable firms, with a market capitalisation exceeding $2.5 trillion (£1.9 trillion).
Chinese state media reported that Huang was visiting Beijing at the invitation of the China Council for the Promotion of International Trade (CCPIT), a government-affiliated organisation.
China Daily, the state-run English-language newspaper, published a photo of Huang’s arrival, noting it came “three months after pledging to continue cooperation with #China during his last visit.” The post also included the hashtag #OpportunityChina, used in prior campaigns promoting U.S.-China trade ties.
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