Nvidia CEO Jensen Huang has lauded China’s artificial intelligence capabilities, calling AI models from companies like Deepseek, Alibaba, and Tencent “world class” during a speech at a major supply chain expo in Beijing on Wednesday. His remarks signal Nvidia’s strategic balancing act as the company navigates intensifying technological competition between the U.S. and China.

Huang’s comments came just a day after Nvidia confirmed it would resume sales of its sought-after H20 AI chips in China—sales that had previously been restricted under U.S. export controls. The announcement was welcomed by Chinese tech firms eager to acquire high-performance chips amid tightening regulations on AI hardware imports.

A Delicate Diplomatic Dance

This marks Huang’s third visit to China in 2025, reflecting Nvidia’s deepening engagement with the Chinese tech market despite political headwinds. His visit follows recent talks with former U.S. President Donald Trump, underscoring Nvidia’s efforts to maintain strong ties with both economic superpowers amid a complex geopolitical landscape.

Speaking to Chinese state broadcaster CCTV, Huang highlighted the importance of China as a hub of innovation and emphasized the need for American companies to maintain a strong presence in the Chinese market. “China is massive, dynamic, and highly innovative,” he said, noting that its role in AI development is essential on the global stage.

Renewed Access to the Chinese Market

The renewed ability to sell H20 chips in China comes as part of broader U.S.–China trade negotiations, particularly concerning rare earth materials. While Nvidia can proceed with sales, each transaction must be individually approved by the U.S. government. Reports indicate that tech giants like Tencent and ByteDance are preparing applications to acquire the chips, although ByteDance has publicly denied any active submission.

Nvidia is also developing a new processor, the RTX Pro GPU, specifically for the Chinese market. This chip is designed to remain compliant with current U.S. export restrictions, allowing Nvidia to continue serving Chinese customers without breaching international regulations.

Looking Ahead

Huang is expected to host a closed-door media session later in Beijing, likely to provide further insights into Nvidia’s strategy in China and its future product offerings. As AI continues to reshape supply chains and global economies, Nvidia’s dual engagement with both the U.S. and China could set the tone for how tech giants operate in an increasingly divided technological landscape.

By positioning itself as a bridge between two of the world’s AI powerhouses, Nvidia appears committed to remaining a central player—regardless of which side leads the next phase of innovation.