The Chip of Diplomacy: Nvidia at the Heart of U.S.-China Trade Talks

U.S. President Donald Trump announced on Wednesday plans to discuss Nvidia's advanced Blackwell AI chip with Chinese President Xi Jinping in their forthcoming meeting on Thursday. The chip has been a flashpoint in trade talks between the two economic powerhouses, with Washington citing security concerns over its potential military use by China.

The U.S. has implemented export controls prohibiting Nvidia from selling its top-tier AI technology to China, a policy Beijing has staunchly opposed. President Trump, speaking aboard Air Force One, referred to the Nvidia Blackwell as "super-duper" and hinted at possible discussions with Xi, though he offered no further insight.

Nvidia CEO Jesen Huang noted the company's decision to hold off on applying for export licenses to China amid these tensions. Despite pressure for Chinese firms to develop domestic alternatives, Nvidia's advanced chips remain in demand due to limitations faced by local competitors.