EU accuses China of blocking Nvidia chip supply prior to Trump-Xi Jinping conversation
In the global race for artificial intelligence (AI) dominance, both China and the U.S. find themselves in a context of commercial tensions. This escalating competition has been exacerbated by the complex relations between the two nations, particularly in the semiconductor sector.
Recent developments have seen China ordering its tech companies to avoid using chips made by U.S. multinational Nvidia, following a determination by China's market regulator that Nvidia had violated China's antimonopoly law. Nvidia's CEO, Jensen Huang, has expressed regret over the decision but acknowledged the challenges that lie ahead in resolving the issues between the two countries.
Amidst these challenges, there are signs of potential resolution. This week, an agreement on the social network TikTok was announced between the delegations, with details expected to be finalized by President Trump and Chinese President Xi Jinping.
The U.S.-China tensions in the semiconductor sector have deepened due to restrictions on more than a hundred Chinese companies. In response, China is seeking to end its dependence on third parties in this sector. Meanwhile, there are reports suggesting a 'black market' for semiconductors, with Nvidia chips allegedly entering China despite U.S. sanctions.
The U.S. Treasury Department has ruled out acquiring Nvidia stock, stating that it does not believe the company needs financial support. However, discussions between Nvidia and Trump's government about a new chip for China, which is the successor to the H20, are ongoing.
Political figures in the U.S. have expressed concern about China's actions. Mike Johnson, the Speaker of the U.S. House of Representatives, has criticized China for being a communist regime that does not respect fair trade practices. He has also stated that the U.S. is in a race with China and their allies around the world.
The trade disputes between the U.S. and China have not gone unnoticed by President Donald Trump. He has hinted that he will soon impose tariffs on semiconductors, stating that they won't be high but will be significant.
As the competition between China and the U.S. in the AI race heats up, it remains to be seen how these commercial tensions will unfold and what impact they will have on the global technology landscape.
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