China’s Nvidia ban marks ‘experimental phase’ of trade talks
00:00 Josh
This FT says that Riva China’s companies forbade Nvidia from buying some chips. When we look at Nvidia here, we fell a little. We call two and a half percent. What are you doing from this report, Riva? Why does China do this?
00:26 Riva
Most of this is to signal, Josh. UH, we are in a very experimental stage of US-China negotiations. UH, on Friday, Besant in Madrid, Speaking with Chinese colleagues, trying to make a kind of reconciliation, a kind of bargaining agreement, as you can see from Trump XI talks. And in the midst of all this, when talking about potentially reducing tariffs in some regions, purchasing agreements, things like this, tic full agreement. There are too many climbing points on the technical control front. And China is trying to test this broader negotiation climate to see what might happen from the US at this stage, especially while trying to test UH Trump’s processing. In other words, for now, while Chinese AI developers ultimately try to understand that it would be Beijing to direct the local adoption of the host Cips UH, Beijing. And I think this is part of this signal effort, but we are also not really satisfied with the lower -graded chips to use, look, look, look at the United States. We will go to the most advanced advanced chips.
02:08 Josh
Let’s ask if China has a tactic, if you are the strategy here, you know, throw some weight, signal, hey, we have taken leverage in this trade struggle. Do you think it works, riva? Do you think tactics will be successful?
02:29 Riva
Oh, I guess. I mean, because on the one hand, you want to tell the Chinese AI developers, look, go to a big shopping frenzy for Nvidia chips, right? Therefore, this weakens the assumption of exaggerated NVIDIA and USA of Um Um Um Under under the UH that it can create larger and larger Chinese addictions to the US pile of technology. But, you know, at the same time China plays several different movements in all of this. At this stage, he wants to maximize the privileges from the White House. And this is not just about GPU sales. It will definitely help when it comes to purchasing agreements with the US. In other words, this kind of grocery list in this list will demand that the United States to contain agricultural goods and Boeing jets from China. The GPUs are a nice high valuable product, right? You want to put it on this list. And naturally, China wants to go for things like the Blackwell chips designed by Nvidia for the Chinese market. Uh, but beyond that, China wants to do more here. And this place is going on more basic controls. And so, one of China’s largest suffocating points is still high -band width memory chips. And if China could relieve the United States, it would have a great win. If China could relieve the US under semiconductor production equipment controls, it would have a great win. To be open, I don’t think the US will go there, because these basic controls are critical to keep developing competitors like Huawei for companies like Nvidia.
