Joe Biden Blocks China, American Chip King Intervenes

Jakarta, CNBC Indonesia – America's technological blockade of China continues. Later it targeted the chip sector. As a result of this block, the founder of the chip company Nvidia, Jensen Huang, intervened.

Huang reportedly secretly celebrated New Year in China. This is the first time the boss of the US chip giant has visited China in 4 years.

The visit was carried out amidst increasingly heated geopolitical tensions between China and the US. Nvidia itself is one of the sensitive elements in the technology 'war' between the two countries.

It is known that Nvidia is the largest AI chip manufacturer in the world. So far, China is the largest client which contributes to the majority of Nvidia's revenue.

However, the Joe Biden administration implemented a policy of blocking exports of advanced chips and chip-making equipment to China.

Huang visited Nvidia's offices in Shenzhen, Shanghai and Beijing, according to insider reports. Over the weekend, a video circulated of the 60-year-old man dancing and having fun with employees in China.

It is not known whether Huang's visit to China also has an agenda to meet local officials formally, quoted from Yahoo Finance, Thursday (25/1/2024).

Previously, Huang had warned the Joe Biden administration about the impact of blocking chips on China. According to him, this tactic will actually encourage local players to develop chips independently.

As a result, US technology companies will suffer in the long term. Therefore, the US then softened the blocking rules.

Nvidia and other US companies can still export chips to China, as long as they are not with the highest and newest specifications.

[Gambas:Video CNBC]

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