US chipmaker Nvidia reaffirmed its commitment to China this week despite reports that the Biden administration is set to unveil new export restrictions against Beijing in coming days.
On Monday, Nvidia’s executive vice president of Worldwide Field Operations, Jay Puri met with Beijing’s top trade negotiator and said the chipmaker considered China a key market.
That was after Nvidia chief Jensen Huang said on Saturday that the chipmaker remained committed to maintaining its presence in mainland China.
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During his visit, Puri said Nvidia would continue to provide quality products and efficient services in China and also participate in the development of the country’s digital economy, according to a report by the South China Morning Post.
In response, Chinese vice commerce minister Wang Shouwen said Beijing “welcomed Nvidia’s continued investment in China” and that it will support the chipmaker’s efforts “to continue to take root” in the country.
Wang also “encouraged the company to seize development opportunities,” according to state media.
He also also pledged to build a better business environment for foreign firms in China, adding that Beijing was willing to strengthen communication with the US to return economic and trade relations between the two countries to “the right track.”
New chip curbs loom
Nvidia’s commitment to China comes at a significant time, considering Washington is planning new regulations that could add up to 200 Chinese chip companies to a trade blacklist.
US suppliers would, effectively, be barred from shipping goods to the targeted firms, Reuters reported, citing an email from powerful Washington-based lobbying group, the US Chamber of Commerce.
The Commerce Department, which oversees US export policy, plans to publish the new regulations “prior to the Thanksgiving break,” next Thursday, according to the email.
Another set of rules curbing shipments of high-bandwidth memory chips to China is expected to be unveiled next month as part of a broader artificial intelligence package, the email said.
Responding to the report, China’s foreign ministry said the country was “firmly opposed to the US overstretching the concept of national security, abusing export control measures and making malicious attempts to block and suppress China.”
It also “vowed to take resolute measures to firmly defend the legitimate and lawful rights and interests of Chinese companies,” state media reported.
The Biden Administration has slapped a raft of export controls on China aimed at halting its technological advances, amid fears the technology could be used to bolster China’s military.
Nvidia, meanwhile, has been majorly impacted those firms, with its revenues from China sliding over the past year.
The curbs have also forced Nvidia, the world’s leading maker of chips used for artificial intelligence applications, to change its product lineup in China.
Not being allowed to sell its powerful AI chips in China has also put a dent to Nvidia’s near 90% dominance of China’s chip market, with companies like Huawei Technologies racing to fill market gaps in its absence.
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