Nvidia in the Crosshairs: Faces $5.5 Billion Blow as Trump Targets China Ties

The Nvidia China trade war has escalated. The world’s leading chipmaker has lost $5.5 billion, is under Congressional investigation, and is accused of helping China’s AI ascension via export loopholes.

The pressure increased after Chinese company DeepSeek shocked the world with an AI model on par with ChatGPT—developed using less capable Nvidia chips. Now, the US crackdown is in full force, and Nvidia CEO Jensen Huang’s trip to Beijing is adding to the suspicion.

Nvidia’s $5.5 Billion Blow from Trade Restrictions

Both the Biden and Trump administrations have taken aim at Nvidia’s China business. In 2022, Biden limited the export of Nvidia’s H100 and A100 chips. This week, Trump introduced new restrictions on the H20 chip—a diluted version developed specifically for Chinese customers.

Nvidia chief Jensen Huang flies into Beijing for talks https://t.co/3mxIhhTwiR

— Financial Times (@FT) April 17, 2025

Nvidia acknowledged the latest regulations stifle billions in orders. The company now accounts for a $5.5 billion revenue loss in China-related sales.

US Legislators Charge Nvidia with Abusing Loopholes

A bipartisan House committee probing Nvidia’s involvement issued scathing allegations. The committee indicated that Nvidia intentionally created chips that took advantage of export control loopholes. The H20 chip, which it sold to China, is one such example.

Legislators John Moolenaar and Raja Krishnamoorthi charged Nvidia with indirectly enabling DeepSeek’s AI research. They pointed out the company’s use of “tens of thousands” of Nvidia chips—some of which were reportedly procured in defiance of curbs.

The committee asked Nvidia to provide customer lists, China-related contracts, and communications with DeepSeek.

Huang’s China Visit Raises Red Flags

During these disclosures, CEO Jensen Huang visited China. He met DeepSeek founder Liang Wenfeng and Vice Premier He Lifeng. Chinese state media reported Huang as saying China is “a very important market.” He hoped to “continue co-operating” with Chinese companies.

Legislators immediately raised the flag, asking whether the visit was meant to enhance chip availability for prohibited parties. The optics of the visit, during times of national security fears, invited sharp rebuke.

Geopolitics Meets Silicon Strategy

This tale is a mirror of more than just business gains. It demonstrates the increasingly heightened conflict between technology commerce and national security. With AI framing international power, America aims to cut China off from chips. Yet Nvidia, prompted by consumer demands, straddles the fence.

The backlash hides an undeclared war on loopholes under the headlines about tariffs. And it’s questioning the relevance of existing export controls. Is regulation able to catch up with innovation?