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Saturday, 19 April 2025

What lies behind Nvidia’s commitment to ‘unswervingly serving the Chinese market’

Nvidia Photo: VCG


Nvidia CEO Jensen Huang, who has visited China again three months after his trip in January, recently publicly stated that the company would "unswervingly serve the Chinese market" and emphasized China's key role in the global supply chain. He said Nvidia has grown together with the Chinese market and achieved mutual success. Against the backdrop of the US imposing tariffs and banning Nvidia's export of H20 chips to China, Huang's visit and his emphasis that China is a "very important market for Nvidia" can be seen as US companies' indirect resistance to US government's protectionist trade policies. His stance, viewing China as an opportunity rather than a threat, and the call for cooperation rather than decoupling, resonates strongly with the American tech and business community.

China is one of the world's largest consumer markets, and its thriving industrial ecosystem and broad application scenarios provide crucial momentum for continuous innovation for many American companies like Nvidia. As Huang put it, in-depth cooperation with Chinese companies has enabled it to evolve into an even more competitive international enterprise. Previously, some US business leaders also noted that they don't need to hitch a ride with the US government, they need the government to clear the path for us. The importance and urgency of cooperation with China have "unexpectedly" been highlighted against the backdrop of the US' reckless imposition of tariffs.

Not just in the tech and business industry, the call for "We need China" has recently spread across various sectors of American society. A recent poll by Pew Research Center also revealed surprising results. The survey showed that fewer and fewer Americans now view China as an enemy, with significant year-over-year decline in the share of Americans with an unfavorable view of China over the past five years. Bloomberg described this as "a sentiment that runs counter to the tariff," calling the finding "surprising." Moreover, on overseas social platforms like TikTok, Chinese e-commerce has unexpectedly risen to prominence, sparking a new wave of "Made in China" enthusiasm among US consumers. Many influencers have posted unboxing videos of products bought from Chinese e-commerce platforms, exclaiming that they can get the same quality items for just a tenth of the price.

Despite Washington frequently sent signals of confrontation, which has pushed China-US economic relations to the brink and, American society is not in favor of a zero-sum game between the two countries. Pew's survey results, to some extent, puncture the bubble of the so-called tariff policies inflated by Washington. Relevant approach has not reflected public opinion in the US, but instead oversimplifies the complexity and multifaceted nature of the bilateral relationship, turning it into a full-scale confrontation. Washington's abuse of tariffs ignores the high degree of economic complementarity between the two countries and the practical needs of their people, creating chaos and uncertainty for both the US and the global economy - something the American public is feeling firsthand.  

Those who are "surprised" by public opinion should reflect on what exactly is American public's attitude toward China, and who is "influencing" Americans' perceptions of China. Over the past few years, the so-called "China threat" has almost become the default opening line for politicians when discussing China, and the attitudes of some members of the public have also been affected. "China is taking advantage of the US," "the US must get the trade imbalance fixed," and "pursuing economic containment of China to achieve 'America First'" - this is the outdated logic behind Washington's so-called tariff policies toward China.

China-US economic and trade cooperation has brought enormous economic benefits to both sides, and the US has benefited just as much as China. The US imports a large volume of consumer goods, intermediate goods, and capital goods from China, supporting the development of its manufacturing supply chains and industrial chains, enriching consumer choices, lowering the cost of living, and improving the real purchasing power of the American public, especially for middle- and lower-income groups. When taking into account goods trade, services trade, and the local sales revenue of domestic enterprises operating in each other's countries, the economic gains from China-US trade are roughly balanced. These facts cannot be concealed by lies or slander; in fact, the more China-US economic and trade relations come under strain, the more likely these truths are to resonate within the US. 

Gavin Newsom, governor of California, recently announced plans to sue the US federal government over its abuse of tariff policies, stating, "We're standing up for American families who can't afford to let the chaos continue."

The hope of the China-US relationship lies in the people, its foundation is in the two societies, its future depends on the youth, and its vitality comes from exchanges at subnational levels. According to the public opinion survey conducted by the Global Times Institute (GTI) on "mutual perceptions between China and the US" in 2024, around 90 percent of respondents from both China and the US express concern over bilateral relations, with mainstream public opinion in both countries favoring strengthened economic and trade exchanges, people-to-people exchanges, and cooperation on climate change. 

The phenomenal grassroots interactions between Americans and Chinese on social media recently also reflect that, beneath the anti-China clamor stirred up by some Washington politicians, there remains a strong, constructive desire among the people of both nations for peaceful coexistence and cooperative engagement. If the US continues to go its own way, pressing China with tariff blackmail and inciting for China-US "decoupling," the growing opposition from their voters may become a political reality that Washington can no longer ignore.
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Friday, 18 April 2025

California sues Trump administration over "unlawful tariffs

 


California governor Gavin Newsom announced on Wednesday that the western U.S. state which has the largest economy in the nation is suing the Trump administration over the President's sweeping "unlawful tariffs" on international trading partners.

"President Trump's unlawful tariffs are wreaking chaos on California families, businesses, and our economy - driving up prices and threatening jobs," Newsom said in a statement, adding that "We're standing up for American families who can't afford to let the chaos continue."

"Donald Trump does not have the authority to impose these destructive and chaotic tariffs. America stands to lose too much," said the governor in a post on X platform.

"We're taking him to court," said the governor.

"California is the largest manufacturing state in our union, one of the largest trading partners around the globe. No state will be impacted more than the state of California as it relates to the unilateral authority that's been asserted by the Trump administration to impose the largest tax increases in modern American history," he noted.

Newsom pointed out that "In America, forty percent of goods movements in this country come through two ports of entry in California. About 50 percent of that from China itself."

In the lawsuit, expected to be filed in the U.S. District Court for the Northern District of California, California officials will argue that the law, known as the International Emergency Economic Powers Act, which Trump cited to impose the tariffs, does not grant him the ability to unilaterally adopt those tariffs.

California, also the most populated U.S. state, is the first state in the nation to sue Trump administration on tariffs.

The Golden State is the largest importer among all U.S. states, with more than 675 billion U.S. dollars in two-way trade supporting millions of jobs throughout the state. Mexico, Canada and China are California's top three export destinations, buying nearly 67 billion dollars in California exports, which was over one-third of the state's 183 billion dollars in exported goods in 2024, according to the data released by the governor's office. - Xinhua

31 MOUs inked will deepen M'sia-China growth, say trade groups



“It further signals China’s readi­ness to work closely with regional partners like Malaysia to promote stability and shared prosperity in an increasingly complex global landscape,” he said when contacted yesterday.

ALSO READ: Despite challenges, Malaysia pledges to solidify trust, communication with China

Lauding the MOUs, Soh said it was important to take things beyond just the trade volume and investment ­figures.

“It must focus on co-creating high-value industrial ecosystems that support both countries’ aspirations, aligning Malaysia’s New Industrial Master Plan 2030 (NIMP2030) with China’s innovation-­driven growth agenda,” he said.

Citing significant potential in strategic sectors such as advanced manufacturing, clean and renewable energy, electric mobility, artificial intelligence, biotechnology and smart logistics, Soh said the collaboration would spur both nations to jointly develop high-impact projects and sustainable, value-added supply chains.

He suggested that a more structured bilateral cooperation ­mechanism between both govern­ments and the business community be set up, such as joint innovation hubs and green and digital industrial parks.

ALSO READ: Synergy between two nations

Such an arrangement would further enhance Malaysia as a strategic base for Chinese ­investors to tap into Asean and the regional market via the Regional Comprehensive Econo­mic Part­nership (RCEP) and ACFTA.

Associated Chinese Chambers of Commerce and Industry Malaysia (ACCCIM) treasurer-­general Datuk Koong Lin Loong said the deepening cooperation went beyond China’s Belt and Road Initiative (BRI) as it covered several other key sectors.

He said the upgrading of the Malaysia-China Kuantan Industrial Park (MCKIP) under the “Two Countries, Twin Parks” initiative should also include the setting up of similar parks in other parts of the country.

Koong stated that collaboration aimed at enhancing inspection protocols for items such as fresh coconuts and standardising regulations could facilitate increased agricultural exports to China.

Small and Medium Enterprises Association Malaysia (Samenta) national president Datuk William Ng said the wide-ranging agreements marked a promising new era in Malaysia-China relations.

“I see this as a pivotal moment for Malaysian businesses, especially our SMEs. The sectors identified in the MOUs reflect where the future of trade and industry is heading,” he said.

Ng said the benefits of the strategic partnerships must be inclusive and accessible to local SMEs, which he said made up over 97% of Malaysian businesses.

“We welcome these MOUs, and we want to see them benefit the SMEs and the rakyat and not just a select group of GLCs,” he added.

Ng proposed the creation of downstream programmes to enable SMEs to engage in key sectors through joint ventures, vendor development, or technology adoption.

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He said the collaboration should see Chinese companies helping local SMEs tap into the Chinese market via cross-border digital platforms, especially those operated by Chinese tech firms.

Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the MOUs showed a clear intent by both nations to work together in bringing prosperity to their people.

“Among the key areas of cooperation is the adoption of AI and e-commerce, where China is a global leader. If we can adopt their approach, we can accelerate the digitisation of government and the implementation of a more comprehensive digital economy for the nation,” he said.

Wong said that Malaysia would also benefit from the collaboration between the leading universities of both nations, particularly in relation to emerging technologies.

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