Nvidia CEO Talks With Trump Officials on China Chip Strategy/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Nvidia CEO Jensen Huang confirmed talks with the Trump administration about a new AI chip for China. The proposed B30A would be less powerful than U.S.-restricted chips but still serve China’s AI data centers. The negotiations come amid trade tensions, security concerns, and accusations from Beijing over chip “backdoors.”
Nvidia-China Chip Talks: Quick Looks
- Nvidia CEO Jensen Huang confirms discussions with Trump administration.
- Proposed B30A chip would be weaker than top-tier U.S. semiconductors.
- U.S. restrictions bar China from buying Nvidia’s most powerful chips.
- Nvidia recently resumed H20 chip sales to China with a 15% U.S. tax.
- Beijing raised security concerns, citing alleged “tracking and shutdown” risks.
- Washington allowed some trade relief, lifting software and jet engine curbs.
- China’s rare earth exports reopened as part of the talks.
- U.S. Commerce Secretary Lutnick: America only sells China “fourth-best” chips.
Nvidia CEO Talks With Trump Officials on China Chip Strategy
Deep Look
BANGKOK — Nvidia CEO Jensen Huang said Friday that his company is actively discussing a potential new semiconductor, the B30A, with the Trump administration in hopes of supplying chips to China despite strict U.S. national security restrictions.
The comments came during Huang’s trip to Taiwan, where he met with Taiwan Semiconductor Manufacturing Co. (TSMC), Nvidia’s key production partner.
B30A: A Weaker AI Chip for China
Huang described the B30A as a follow-up to Nvidia’s H20 chip — one that would be weaker than Nvidia’s flagship B300 processors, which are barred from export to China.
“I’m offering a new product to China for AI data centers, the follow-on to H20,” Huang said. “That’s not our decision to make. It’s up to the United States government.”
The B30A, built on Nvidia’s Blackwell technology, reportedly runs at about half the speed of the B300, offering China access to advanced AI computing while still falling under export compliance limits.
Resumed H20 Sales With Heavy Tax
Nvidia’s recent history with China sales has been rocky. In April, U.S. officials suspended Nvidia’s shipments to China amid national security reviews. However, following trade negotiations, the Trump administration approved renewed H20 sales — with a catch. Nvidia must pay a 15% tax on those sales, a condition also applied to rival AMD’s sales of its MI380 chips.
Huang praised the administration for allowing sales to resume, saying Nvidia appreciated the opportunity to supply Chinese buyers despite added costs.
Trade-Offs in Broader U.S.-China Negotiations
The chip developments come against the backdrop of wider trade talks between Washington and Beijing. Both sides agreed to pull back on certain non-tariff restrictions:
- China approved more rare earth exports — vital for global electronics and defense supply chains.
- The U.S. eased restrictions on chip design software and jet engine exports.
- Nvidia lobbied for, and secured, permission to continue selling H20 chips.
These moves signal a fragile détente, though tensions remain high.
Beijing Raises Security Concerns
China’s Cyberspace Administration recently accused Nvidia chips of containing potential “backdoor” functions such as tracking, remote shutdown, and location monitoring. The agency demanded detailed documentation.
Huang dismissed the allegations:
“We have made very clear and put to rest that H20 has no security backdoors. There are no such things. There never has been.”
Still, he acknowledged Nvidia is in discussions with Beijing to address its concerns.
U.S. Commerce Secretary: Only ‘Fourth-Best’ Chips for China
The debate escalated after U.S. Commerce Secretary Howard Lutnick openly admitted the U.S. strategy is to deliberately restrict China’s access.
“We don’t sell them our best stuff. Not our second-best stuff. Not even our third-best. But I think fourth-best is where we’ve come out,” Lutnick told CNBC.
The comment reportedly frustrated Chinese officials, who have long accused Washington of attempting to cripple China’s tech sector.
China’s Push for Self-Reliance
China’s ruling Communist Party has declared technological self-sufficiency a strategic priority. Yet despite heavy investment, it continues to depend on foreign semiconductor designs and know-how for advanced AI chips.
While Beijing sees Nvidia as essential for its AI ambitions, Washington’s export controls highlight the geopolitical stakes of the chip industry — a front line in the U.S.-China rivalry.
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