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Nvidia's China Future Unclear After Trump-Xi Summit

New York Times Business •
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Nvidia's future in China remains uncertain after the Trump-Xi summit, despite CEO Jensen Huang's last-minute inclusion in the presidential delegation. The company's powerful H200 AI chip, approved by President Trump for sale to China last December, has yet to receive greenlight from Chinese authorities. Instead, Beijing is actively promoting domestic alternatives, with Chinese companies increasingly turning to homegrown chipmakers like Huawei. China recently reached a significant milestone when DeepSeek announced its latest AI model was optimized for Huawei chips, signaling progress in China's quest for technological self-sufficiency.

US officials appeared to take a hands-off approach during the Beijing visit, with Trade Representative Jamieson Greer stating that China's decision to purchase Nvidia chips would be "a sovereign decision." This stance reflects China's firm commitment to developing advanced chips domestically while viewing the American tech industry as a competitive threat. The lack of discussion on chip export controls during the summit suggests ongoing tensions in US-China tech relations despite high-level diplomatic engagement.

Key Points:

- Nvidia's H200 AI chip sales to China remain stalled despite Trump approval

- China is accelerating push for domestic chip alternatives like Huawei

- US officials defer to China on purchasing decisions during summit

- China achieves milestone with AI model optimized for domestic chips

- Growing technological competition between US and China in AI sector