The Chinese government ordered domestic enterprises to stop purchasing NVIDIA (NVIDIA) chips, sparking global market enthusiasm. According to US media reports, the United States and China are expected to finalize TikTok. At the same time, China has adopted this strong means for NVIDIA, aiming to show that "there is also a code in its hands", forcing the US to allow technology to block and even charge tax issues.
But the report also believes that China's strategy has a virtual voice component. The reason is that the Chinese market accounted for 20% of NVIDIA's global revenue three years ago. However, the Joe Biden administration regulates exports to China, and the Donald Trump administration remains. The Chinese market's share of NVIDIA's global revenue has dropped to 6%. Nowadays, orders are mostly from US customers, and China's impact on NVIDIA's pressure is actually limited.
The Huaer Street Journal today reported on the issue of "China makes a move to NVIDIA: We also have a code". While the United States and China are about to finalize a agreement to ensure TikTok continues to operate in the United States, the Chinese government hinted that the United States through the strong means of banning NVIDIAAI chips, hoping to reach a second agreement on technical issues.
Russian President Vladimir Putin and North Korean leader Kim Jong-un and others attended the Beijing 93rd Army. After surrounding Chinese President Joe Jinping, China also fought for Trump to visit Beijing. If Trump enters the journey, he can show the Chinese people the prestige that "even the president of the United States wants to come to China."
But whether Trump and Xi Jinping meet or the TikTok agreement have symbolic meanings, they have no contact with the core of the US-China economic relations: the high taxes and technology bans implemented by the US against China, which is the background of the Chinese government's sudden move to NVIDIA. At the same time, U.S. Secretary of Finance Scott Bessent and Chinese officials were discussing TikTok issues in Madrid.
A person who provided consultation with Chinese officials said that China's message is: China has "influence" on NVIDIA's most valuable American companies and other similar companies. According to the Chinese government's vision, this threat could become a code for debate with the United States and prompt Trump to at least make it easier for tax and other trade issues. But as mentioned above, China's strategy has a virtual sound component.
Although some Chinese officials tend not to use NVIDIA chips to stimulate the development of Chinese chip manufacturers. But Chinese technology experts said they need NVIDIA, and NVIDIA also needs them.
NVIDIA is designing new chips with the foundation of Blackwell architecture for Chinese customers, helping Chinese companies expand AI applications in manufacturing and banking industries. Chinese industry insiders pointed out that if the U.S.-China tensions cause NVIDIA to be unable to sell this chip, then the U.S.-China AI competition may put China at a disadvantage in the short term.
People familiar with the matter revealed that during the Madrid verdict, China's chief trade judge and deputy general manager of the State Council, He Lifeng demanded that the United States completely cancel taxes and export controls. But the Trump team refused to let things go and showed the US code: if a negotiation cannot be reached on TikTok, Jinping and Trump cannot meet, and Trump may (in the United States) close TikTok.
According to the current proposal, according to the current proposal, a financial group composed of US investors will hold most of the newly established US shares of TikTok and is also responsible for the US to operate TikTok. Oracle, which provides custodial services for TikTok's US user data, will participate in the transaction. As for US users, US users will be transferred to a new application in TikTok's development test.
Extended reading: China blocked NVIDIA RTX Pro 6000D, Huang Renqiu admitted his disappointment Concentrate firepower to deal with NVIDIA? Beijing cancels Google's anti-corruption investigation WSJ: US-China reach agreement, Oracle leader takes 80% of new TikTok shares