Nvidia CEO Huang sidelined in Beijing: Caught between US-China ‘larger agendas’ – here’s what’s happening

Nvidia CEO Jensen Huang on Wednesday admitted the chipmaker is caught in the crossfire of the US-China trade war, saying Washington and Beijing “have larger agendas to work out” as the company struggles to balance soaring global demand for its AI chips with tightening political restrictions.Speaking in London on Wednesday, Huang said, “We can only be in service of a market if a country wants us to be,” further adding that, “I’m disappointed with what I see, but they have larger agendas to work out between China and the United States, and I’m patient about it.”“We’ll continue to be supportive of the Chinese government and Chinese companies as they wish,” Huang said, stressing Nvidia’s intent to keep engaging with China despite regulatory hurdles.The remarks came after the Financial Times reported that China’s internet regulator had instructed leading firms including ByteDance and Alibaba to cancel orders and testing of Nvidia’s RTX Pro 6000D, its latest China-tailored AI chip.China’s market regulator, the State Administration for Market Regulation (SAMR), also launched a preliminary probe into Nvidia alleging its violation of the country’s anti-monopoly law, though it did not share details of the breach.

Why China is probing Nvidia?

Chinese regulators have launched a preliminary investigation into US chipmaker Nvidia, saying the company has violated the country’s anti-monopoly laws. Authorities said the probe will continue, while Nvidia maintained it has complied with all regulations and will cooperate fully.The investigation focuses on Nvidia’s $6.9 billion acquisition of Israeli-American firm Mellanox Technologies in 2019. At the time, China’s markets regulator approved the deal after an antitrust review, but imposed strict conditions, citing concerns that the merger could hurt competition in global and Chinese markets for GPU accelerators, high-speed Ethernet adapters, and network interconnect equipment, according to state media Xinhua.In July, China’s cyberspace regulator reportedly summoned the company over “security risks” linked to potential vulnerabilities in its H20 AI chips. The Financial Times later reported that Chinese officials were angered by US Commerce Secretary Howard Lutnick’s comments that Washington would never sell China its “best” or even “third-best” technology, but only enough to make Chinese firms dependent on the American tech stack.

Nvidia shares slip as Beijing launches probe

Nvidia, valued at over $4.2 trillion, saw its shares fall 2.6% after the news on Wednesday. Beijing has also launched a preliminary anti-monopoly probe into the company’s practices.The latest restrictions extend earlier guidance that targeted Nvidia’s H20 chip, a model designed to meet US export rules, Reuters reported.The RTX6000D, introduced for the Chinese market, has seen tepid demand due to cost concerns, and some firms have already pulled back from placing orders.

A pawn in the ‘digital Cold War’

“Jensen Huang’s diplomatic comment about ‘larger agendas’ is CEO-speak for ‘We’re pawns in a digital Cold War,'” Michael Ashley Schulman, CIO of Running Point Capital Advisors told Reuters.Successive US administrations have restricted Chinese access to advanced semiconductors, while Beijing has pressed local firms to reduce dependence on US suppliers. In August, US President Donald Trump allowed Nvidia to sell H20 chips to China in exchange for a 15% revenue cut, though shipments have yet to move.Amid the uncertainty, Nvidia has boosted its lobbying in Washington, hiring three external firms and spending $1.9 million in the first half of 2025, far more than the $640,000 it spent in all of 2024.China accounted for 13% of Nvidia’s sales last year, but the new restrictions could further pressure its business in one of the world’s biggest chip markets.“In today’s global tech scene, multi-nationals like Nvidia are expected to code-switch between Washington’s national security doctrines and Beijing’s techno-sovereignty demands, all while keeping shareholders happy,” Schulman added.