NVIDIA CEO Takes Over From Musk as Key Liaison Between US and China, According to Report

This is not investment advice. The author holds no positions in any of the stocks mentioned.

NVIDIA CEO Emerges as Key Mediator Between the US and China

Recent insights from Nikkei suggest that Jensen Huang, CEO of NVIDIA, has emerged as a crucial figure in mediating relations between the United States and China, stepping into a role previously held by Elon Musk of Tesla. Huang achieved a significant milestone by successfully advocating for the Trump administration to authorize export licenses for NVIDIA’s H20 AI chips, tailored specifically for Chinese enterprises. This shift in trade dynamics has positioned Huang favorably in the eyes of Beijing, which is increasingly looking to influential business leaders for diplomatic engagement with the US.

However, the start of 2025 posed challenges for Huang and NVIDIA as the outgoing Biden administration enacted stringent AI Diffusion rules. These regulations restrict the sale of advanced AI GPUs to a select group of twelve nations, adversely affecting NVIDIA’s global business strategy. Faced with additional complications as the Trump administration restricted NVIDIA’s ability to market its H20 GPU specifically to China, Huang’s situation became precarious.

The ban on the H20 GPU forced NVIDIA to take drastic measures, leading to significant inventory write-offs and the suspension of production lines. In response, Huang embarked on a strategic outreach campaign that ultimately persuaded the US government to resume granting export licenses for the H20 chips during his visit to China.

While in China, Huang maintained his momentum by commending the nation’s AI capabilities and reaffirming NVIDIA’s commitment to its business interests there. His robust connections with US government officials, alongside his diplomatic success in securing H20 export licenses, have positioned him as a favorable intermediary between the two powerful nations, effectively filling the role previously held by Musk, as noted by several sources.

Central to Huang’s advocacy for the H20 export licenses is the notion of maintaining China’s dependency on US hardware to meet its AI demands. This strategy has not only yielded favorable outcomes but has also positioned Huang as a key liaison between Washington and Beijing, contrasting sharply with more hawkish voices in US security discussions. Concerns regarding national security have prompted restrictions on the sale of advanced technology, particularly regarding Chinese military advancements, further complicating the landscape.

These escalating tensions are mirrored in the limited availability of high-end chips from Taiwan’s TSMC to Chinese firms like Huawei, as well as restrictions imposed by Dutch company ASML on the sale of advanced EUV lithography equipment to SMIC, a prominent Chinese chip manufacturer.

As Huang’s influence grows, he is perceived by some Chinese analysts as favoured by Beijing, blending celebrity status with significant strategic relevance. According to Lizzi Lee, a fellow at the Asia Society Policy Institute’s Center for China Analysis, Huang’s position distinguishes him from Musk, who has extensive commercial interests and manufacturing operations in China.

Source & Images