US Senators Elizabeth Warren (D‑MA) and Jim Banks (R‑IN) have formally warned Nvidia CEO Jensen Huang against meeting with Chinese companies tied to military or intelligence activities during his upcoming trip to the People’s Republic of China. In a bipartisan letter dated July 11, they expressed concern that such engagements could inadvertently legitimize entities on U.S. export-restricted lists or expose loopholes in U.S. export enforcement .
“We request that you refrain from meeting with representatives of any companies that are working with the PRC’s military or intelligence establishment… or are suspected to have engaged in activities that undermine export controls.”
“There is a new bipartisan consensus that the hardware powering advanced AI, which includes NVIDIA graphics processing units (GPUs), is of immense strategic importance. If exported freely to the PRC, this hardware could accelerate the PRC’s effort to modernize its military.”
“We hope you will agree that it would be deeply irresponsible for an American CEO to meet with companies that violate U.S. law and are actively developing military capabilities that could undermine U.S. national security.”
Key Background & Strategic Context
China-Specific AI Chip Set to Launch in September
Nvidia plans to unveil a modified version of its flagship Blackwell RTX Pro 6000, tailored for Chinese customers and designed to comply with U.S. export restrictions. The stripped-down model omits features such as high-bandwidth memory (HBM) and NVLink to meet regulatory requirements. Jensen Huang is expected to announce it during his Beijing visit.
Export Restrictions Costing Billions
U.S. export controls have recently barred advanced chips such as the H100, H200, and Grace Blackwell from shipment to China. CEO Huang estimates this has already cost Nvidia around US $15 billion in revenue and triggered a $5.5 billion writedown in the previous quarter.
China’s Massive GPU Deployment Despite U.S. Bans
Despite the restrictions, Chinese provincial governments are constructing over 115,000 GPU-equipped AI data centers in regions like Xinjiang and many seeking banned Nvidia chips. Some facilities reportedly run models from controversial firms like DeepSeek, believed to support Chinese military and intelligence initiatives.
Growing Consensus on AI Chips as Strategic Hardware
Lawmakers now view AI-capable GPUs as critical technology with dual-use risk. Warren and Banks emphasize that unrestricted exports could accelerate China’s military modernization and intelligence capabilities
Regulatory Tightening and Congressional Oversight
Nvidia’s Shanghai R&D center, slated to receive congressional scrutiny, prompted concern about evading the spirit, even if not the letter of U.S. export law.
Nvidia’s revenue from China and Hong Kong stood at approximately $17.1 billion in FY2025 (~13% of total revenue). The company argues that global adoption of its software stack advances U.S. technological leadership, but Congress sees national security risks in China’s increasing AI capabilities.
Huang’s China visit coincides with Beijing’s International Supply Chain Expo, where he may meet with leaders such as Premier Li Qiang and Vice-Premier He Lifeng. This diplomatic bridge underscores Nvidia’s role as a commercial intermediary in U.S.–China tech rivalry.
| Key Concern | Impact |
|---|---|
| Compliance Risk | Even unintentional contact with companies aiding military AI could trigger sanctions or reputational backlash. |
| Strategic Exposure | China’s push to bypass the export ban via shell firms or smuggling by DeepSeek and others is accelerating local AI hardware capabilities |
| Market Impact | Investor sentiment hinges on how Nvidia navigates regulatory terrain. Trade diplomacy may influence next phases of export licensing and chip deployment. |
| Competitive Risk | Beijing’s AI infrastructure build-out and domestic firms may reduce Nvidia’s dominance over time . |
Nvidia faces a thorny balancing act: navigating escalating U.S. regulatory scrutiny while preserving access to China’s massive AI market. Huang’s upcoming trip and associated launch of a compliant AI chip underscore the company’s careful pivot, but also make its executives a focal point in Washington’s broader strategy to control dual-use technologies.
Whether Nvidia emerges as a stabilizer in US–China tech diplomacy, or inadvertently fuels Beijing’s AI ambitions depends heavily on the optics and compliance of its engagements during this visit.
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