NVIDIA (Nvda,, Financial) CEO Jensen Huang met Chinese officials In Beijing this week, just a day after the United States government has launched an investigation into the sales of the company’s flea.
Huang visited the Chinese Council for the Promotion of International Trade and Vice-Minister of Vice-Minister He Lifeng, according to Chinese state media. During the meetings, he said that the American restrictions had struck Nvidia’s activities, but promised that the company would continue to manufacture products in accordance with American rules while serving the Chinese market.
The visit occurred during a rocky section for Nvidia’s relations with Washington. Earlier in the week, the company announced an investment of $ 500 billion in the American artificial intelligence infrastructure, a decision rented by the administration of President Donald J. Trump as “the Trump effect”.
The next day, Nvidia said he would need a license to sell more china chips a change that could erase $ 5.5 billion on her planned sales. The Restricted Committee of the Chamber on the Chinese Communist Party has also opened an investigation on the question of whether Nvidia has circumvented the export rules, especially in sales to the startup of Chinese AI Deepseek.
Nvidia’s shares fell 6% on Wednesday after the news.
Nvidia has been facing increasing pressures since 2022, when former President Joseph R. Biden Jr. imposed more strict rules on advanced exports of fleas. The company replied by freeing a lower chip, the H20, adapted to the Chinese market.
China has always brought in $ 17 billion in world revenues of $ 130 billion in Nvidia last year, although it is the smallest share of the company’s income in China for a decade, according to Bernstein Research.
In the midst of restrictions, Chinese technological companies rushed to store Nvidia chips, sometimes through black market chains.
Earlier this year, Huang met President Trump at a dollar dinner per seat in Mar-A-Lago.
This article appeared for the first time on Gurufocus.