Two U.S. Senators urged NVIDIA's CEO to avoid contact with Chinese businesses suspected of violating export controls and supporting Beijing's military during the upcoming visit.
In a letter to NVIDIA's CEO on July 11, 2025, Senators Elizabeth Warren and Jim Banks emphasized the importance of complying with U.S. technology export regulations and warned about the risks associated with the Chinese business-military link.
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Two U.S. Senators suggested NVIDIA's CEO avoid meetings with restricted Chinese companies or those linked to the military.
The U.S. government tightens export controls on AI chips, significantly impacting NVIDIA's revenue.
The visit to China by NVIDIA's CEO is expected to focus on research development while seeking approval from the U.S. for new products.
What prompted U.S. Senators to warn NVIDIA's CEO about the trip to China?
Senators Elizabeth Warren and Jim Banks expressed concern that the NVIDIA CEO's visit could inadvertently legitimize companies closely associated with the Chinese military or exploit loopholes in U.S. export controls. They emphasized the strategic importance of AI hardware, particularly NVIDIA GPUs, for national security.
A joint letter to CEO Huang on July 11, 2025, clearly mentions avoiding communication with companies on the restricted export list to prevent the U.S. from losing its technological advantage.
We are concerned that the visit may enhance the credibility of companies linked to the Chinese military and pose risks to U.S. security. AI hardware, which previously included NVIDIA GPUs, is of immense strategic importance.
Elizabeth Warren & Jim Banks – U.S. Senators, July 11, 2025
How do U.S. export control policies on AI chips affect NVIDIA?
Washington tightened AI chip export regulations in April 2025, which is expected to result in a projected revenue drop of about $15 billion for NVIDIA. CEO Huang had previously warned that these regulations would severely impact business operations and force the company to adjust products according to the law.
Despite restrictions, NVIDIA still seeks to compete in the Chinese market by developing a cheaper Blackwell chip line and maintaining operations here through its research center in Shanghai.
How concerned are we about China's evasion of U.S. controls?
The U.S. Congress is increasingly concerned about evasion of export controls, proposing to require chip manufacturers to track and verify the end destination of their products. A report from Reuters in June 2025 revealed that DeepSeek collaborates with the Chinese military, using third parties to circumvent U.S. trade restrictions.
Export control measures should be tightened to prevent U.S. technology from being used unlawfully, especially in China’s military AI sector.
Analysis of Reuters report, June 2025
How is NVIDIA's CEO's visit to China expected to unfold?
CEO Huang is expected to attend the International Supply Chain Exhibition in Beijing next week and hopes to meet with the Chinese Prime Minister and Vice Premier; these meetings require approval from Beijing. He confirms his focus on tapping into the potential of the Chinese market despite export restrictions.
He also predicts that the Chinese AI market could reach $50 billion and notes that NVIDIA's market share in AI chips here has dropped from 95% in 2021 to about 50% now due to increased domestic competition.
What plans does NVIDIA have to maintain its position in the Chinese market?
NVIDIA plans to launch a low-cost Blackwell chip targeting the Chinese market after receiving approval from the U.S. Government. This reflects an effort to balance legal compliance with maintaining a presence in the world’s second-largest market.
Maintaining a research center in Shanghai also helps the company strengthen technical capabilities and foster research and development cooperation with local partners.
Comparison table of the impact of export policies on NVIDIA and other companies
Impact of Policies (billion USD) Response Current Market Share in China NVIDIA $15 billion projected revenue drop Develop low-cost chips, maintain research in Shanghai About 50% Domestic Chinese companies Gain advantage from U.S. chip import restrictions Rapidly accelerating domestic AI chip development Rapid increase, yet inaccurate
Frequently Asked Questions
1. Why is the U.S. tightening export controls on AI chips? The U.S. aims to prevent advanced technology from being used for China's military purposes, ensuring strategic advantage and national security. 2. Will NVIDIA's CEO face serious consequences for complying with U.S. law? Yes, projected revenue is expected to drop by about $15 billion, but the company is still looking to adjust products to meet regulations. 3. How does the release of low-cost Blackwell chips benefit NVIDIA? It helps maintain market share in China while ensuring compliance with U.S. export control laws. 4. How can restricted Chinese businesses evade U.S. restrictions? By using third parties and avoiding direct receipt of U.S. chips, as the report on DeepSeek indicates. 5. What is the importance of NVIDIA GPUs in AI? NVIDIA GPUs are considered strategic hardware that drives advanced AI applications, affecting both security and technology development.
Source: https://tintucbitcoin.com/nvidia-ceo-bi-canh-bao-truoc-china/
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