Nvidia’s CEO makes surprise visit to Beijing after US restricts chip sales to China
Guardian7 days ago
Nvidia Shares Plunge as US Restricts AI Chip Sales to China
Above: NVIDIA’s logo in Taipei, Taiwan, on April 16, 2025. Image copyright: Daniel Ceng/Anadolu via Getty Images
The Spin
Pro-establishment narrative
If China wishes to compete with the U.S., let it, but it shouldn't use U.S. tools to do so. The administration's new restrictions, therefore, are essential to preventing China from using American-made AI chips in military applications and supercomputers that could threaten our national security, all while maintaining U.S. technological supremacy in the critical AI sector.
Establishment-critical narrative
This abrupt policy change will surely backfire. Rather than holding China back, it will galvanize Chinese companies to fast-track the development of competing products, for which they will have a captive domestic market. The administration's actions ensure that a low-cost, Chinese competitor will emerge to challenge NVIDIA's, and thereby America's, chip manufacturing leadership.