Nvidia CEO Jensen Huang is engaging in a high-stakes diplomatic and commercial push across Washington and Beijing, positioning artificial intelligence (AI) as a defining force for global industries and innovation. And for now, his efforts appear to be yielding results.
Following months of export restrictions, Huang announced that Nvidia is preparing to resume shipments of its H20 GPU to China. The move comes after the US government signaled its approval by issuing the necessary export licenses. At the same time, Nvidia is rolling out a new RTX PRO GPU, specifically engineered to meet US compliance standards and optimized for AI applications in smart factories and logistics systems.
In Washington, Huang met with US President Donald Trump and several key policymakers, reaffirming Nvidia's support for US AI policy goals. These include strengthening domestic infrastructure, creating high-skilled jobs, reshoring advanced manufacturing, and maintaining American leadership in AI innovation.
Soon after, he traveled to Beijing for meetings with Chinese officials and industry leaders. There, he underscored how AI can drive productivity gains and unlock new growth opportunities. Discussions also touched on the need for global cooperation to develop safe and trustworthy AI systems, signaling a rare moment of alignment between the world's two largest economies.
Export reversal sends shockwaves through supply chains
The sudden reversal on H20 exports has left parts of the PC and server supply chain stunned. Industry insiders say the decision reflects the erratic nature of Trump-era policy, where even formal export bans and AI-related restrictions can be revoked without warning.
That level of uncertainty, they warn, complicates future negotiations over tariffs, incentives for reshoring, and compliance with rapidly evolving tech regulations.
Establishing US production facilities under these shifting policies remains a major challenge for suppliers. Many executives now view the policy environment as increasingly volatile, especially as industries are forced to adapt to Trump's often transactional, pressure-heavy approach.
Huang seen as strategic mediator in US-China tech standoff
With H20 now approved for reentry into China, Huang called the current moment an inflection point for AI, likening it to fundamental utilities such as energy, water, and the internet. He reaffirmed Nvidia's commitment to democratizing AI through support for open-source research, foundational models, and global adoption, particularly in emerging economies across Latin America, Europe, and Asia.
But Huang's success in restoring Nvidia's China access has fueled speculation that the company may have offered more than rhetoric. Industry sources suggest Huang played a behind-the-scenes role as a mediator in US-China tech tensions. Since early 2025, he has visited China three times and met frequently with US officials, including Trump-aligned figures.
Analysts believe Nvidia's restored access likely involved more than diplomacy, potentially including major AI investment commitments or undisclosed mutual concessions. The nature of that quid pro quo remains a point of intense scrutiny across the semiconductor industry.
Nvidia's China revenue rebounds amid AI surge
Nvidia's renewed push into China is not only strategic—it's financial. The company's market share in the country had plummeted from 13 percent to single digits, triggering revenue losses estimated to exceed US$10 billion. In recent months, Huang has publicly warned that the export ban would harm not only Nvidia but also the broader US AI ecosystem, ceding ground to China's homegrown alternatives.
According to industry sources, Nvidia had earlier accounted for losses related to H20 inventory and revised its future financial guidance to exclude revenues from China. The company was preparing a temporary solution, the RTX 6000D, for release in the third quarter to adhere to US regulations. However, these plans were superseded by a sudden shift in policy under the Trump administration, which permitted the return of the H20 alongside the introduction of a new RTX PRO GPU.
As Chinese customers rush to secure H20 units despite ongoing uncertainties surrounding US policy. Nvidia's sales recovery is showing signs of acceleration, with analysts predicting the company's quarterly revenue from China could surpass US$10 billion once more. The upcoming earnings report is expected to exceed market forecasts.
Article translated by Sherri Wang and edited by Jack Wu
