American CEOs traveling to China face big challenges, including the local tradition of dancing and singing on stage to huge crowds. This cultural practice is seen as a way for executives to appear relatable and build rapport with the Chinese audience. From NVIDIA's Jensen Huang participating in a Chinese folk dance to Elon Musk's dance at a Tesla event in Shanghai, this tradition plays a special role in China's corporate culture [b6563c1e].
NVIDIA CEO Jensen Huang recently made his first trip to China in four years, visiting NVIDIA's offices in Shenzhen, Shanghai, and Beijing. During his visit, Huang was seen donning colorful traditional garb and dancing with staff, showcasing his enthusiasm for the trip. This visit comes at a time when there are growing concerns about Beijing's ability to bypass US chip restrictions. However, it is unclear if Huang held formal meetings with other executives or officials during his time in China [647eb570] [b6563c1e].
NVIDIA has been facing restrictions on chip sales to China due to US regulations. In response, the company has been developing new AI chips specifically for the Chinese market, including the H20, L20, and L2 chips. These chips are expected to go into mass production soon and are aimed at circumventing the export ban on NVIDIA's previous chips. While the new chips may fall below the absolute caps on computing power, one may still require a license to export them. NVIDIA's efforts to bypass US restrictions may have implications for future government actions [6b5069c5] [b6563c1e].
NVIDIA's visit to China highlights the importance of the Chinese market for the company. Despite the challenges posed by US chip restrictions, NVIDIA remains optimistic about its long-term prospects in China. The company is confident in its strong presence in gaming, data centers, and artificial intelligence, which it believes will drive growth in other regions and help mitigate any potential decline in China. NVIDIA's focus on expanding its business in other countries reflects its commitment to diversifying its revenue streams and adapting to changing market dynamics [9ba9c9ab] [b6563c1e].
Elon Musk, CEO of Tesla, recently posted an AI video on social media platform X-formerly-Twitter that disrespects Chinese President Xi Jinping. The video shows world leaders walking down a fashion runway wearing clothes that poke fun at their history or recent news. Xi Jinping is depicted wearing a pants-like robe with a Winnie-the-Pooh design and the acronym 'CCP,' which stands for the Chinese Communist Party. Comparing Xi and Pooh is considered taboo in China, and a horror movie featuring the character was pulled from theaters due to censorship. This video has raised concerns about the impact on Tesla's bottom line, as China is an important market for the company. Musk's behavior is seen as reckless and potentially harmful to his own interests. There are concerns about the lack of restraint or guidance for Musk's online behavior at Tesla [a09bd50d].