Xi Jinping's Minister Urges Nvidia, US Firms To Invest More In China During Meeting With Jensen Huang, Despite Chip Export Curbs

Chinese Vice Premier He Lifeng has extended an invitation to U.S. enterprises, including Nvidia Corporation NVDA, to enhance their footprint in the Chinese market.

What Happened: During a meeting with Nvidia’s CEO Jensen Huang in Beijing, He Lifeng, also a member of the Political Bureau of the Communist Party of China Central Committee, highlighted the immense investment and consumption potential of the Chinese market, as per a state media agency Xinhua on Friday.

He Lifeng highlighted that China’s ongoing industrial transformation and upgrade create an ideal environment for the new wave of technological and industrial advancements. He also emphasized that China has long been a promising destination for foreign-funded enterprises to invest and engage in trade.

He Lifeng urged U.S.-funded companies, including Nvidia, to focus more on the Chinese market and fully leverage their industrial strengths and capabilities in China, thereby gaining an advantage in global competition.

Why It Matters: This invitation comes at a crucial time when the U.S. has tightened restrictions on Nvidia’s chip sales to China. Nvidia’s CEO Jensen Huang was in Beijing for discussions with Xi Jinping‘s officials and tech leaders about the implications of the U.S.’s decision to impose further restrictions on its sales in the country.

The Nvidia CEO expressed confidence in China’s economic outlook and reiterated Nvidia’s commitment to expanding its presence in the Chinese market, as per the Chinese government. He also emphasized the company’s intention to actively contribute to fostering economic and trade cooperation between the United States and China.

Interestingly, this week, Nvidia revealed plans to establish AI servers in the U.S. valued at up to $500 billion. President Donald Trump later asserted that his re-election was the driving force behind Nvidia’s decision.

Gary Ng, senior economist at Natixis, shared with the BBC that the latest developments indicate global technology is becoming more polarized between “two systems,” one led by the US and the other by China. “Tech will be less global in that sense, and it will be subject to more restrictions,” stated the senior economist.

Meanwhile, Nvidia stock dropped 6.66% over the past five days, while Advanced Micro Devices AMD lost 3.79% during the same period.