Nvidia chips at the heart of the fragile truce in the trade war between China and the United States.
Nvidia CEO Signals Thaw in US-China Trade Tensions
Signs of a potential truce in the trade war between China and the United States are emerging. These signs became clearer during a visit to China by the head of Nvidia, a leading chipmaker for artificial intelligence. Nvidia’s chips are highly sought after by Beijing, but Washington had blocked their delivery in April. “I have been assured that the licenses will be unlocked very quickly,” Jensen Huang told China on Wednesday, July 16, on the sidelines of a supply chain trade show in Beijing.
This marks a shift in the American position, especially after the Donald Trump administration appeared to follow Joe Biden’s policy of trying to curb China’s progress in microprocessors as much as possible.
In April, amid escalating tariffs, the United States blocked Nvidia’s delivery of a chip model, the H20, which was designed in response to previous limitations on the capacity of products sold to China imposed in 2022 by Joe Biden. In retaliation, China has implemented strict restrictions on the delivery of critical metals, in which it has a near-monopoly, creating a shortage.
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