Chip War Intensifies: Nvidia’s Huang Calls for Broader US-China Accord

September 18, 2025: An intense war is being waged between the United States and China in the semiconductor chip domain. Beijing is taking every measure possible to reduce dependence on the AI chip technology from the US for its domestic needs. Nvidia CEO Jensen Huang, during his visit to London, urged efforts to ease the growing tension between the two nations over the chip trade. This was in response to China’s decision to cancel existing orders and halt further purchases of Nvidia’s AI chips. For Nvidia, there’s also the growing pressure of regulatory policies and global supply chains.

China’s Regulatory Actions

Chinese firms like ByteDance and Alibaba have been asked to stop testing or buying Nvidia chips, especially the RTX Pro 6000D, by the country’s internet regulator, the Cyberspace Administration (CAC). If close sources are to be believed, some firms have postponed or cancelled their orders, seeing the lukewarm response to the demand for the newly tailored chip

Huang’s Response and View

The Nvidia CEO expressed disappointment over the recent restrictions imposed by the regulatory bodies. While speaking at a press event, he emphasised to both nations to sort out their ‘larger agendas’ at the earliest. However, Nvidia remains open to serving markets if allowed to, said the Nvidia CEO.

Anti-monopoly Probe

In parallel, Chinese regulators have launched a preliminary probe into Nvidia’s practices under the anti-monopoly law. The accusation is that Nvidia breached prior commitments tied to its acquisition of Mellanox. The investigation adds to uncertainty over the company’s business operations in China.

Market Reactions & Tensions

Nvidia shares dropped nearly 3 per cent amid the escalating regulatory risk. The chip-maker faces the challenge of balancing U.S. export restrictions with Chinese regulatory pushbacks. Observers note that Chinese tech firms are under growing regulatory pressure just as they seek advanced AI chips.

Implications for Global Technology Ecosystem

The standoff between Washington and Beijing over the AI chip trade is increasingly affecting global supply lines and innovation. For India and other countries dependent on semiconductors, this creates both opportunity and risk. Technology policy, trade agreements, and regulatory environments will likely play larger roles in determining which firms and countries succeed in AI hardware and software development.

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