Just how persuasive is Nvidia CEO Jensen Huang? He has scored another victory for his chipmaking company winning over President Donald Trump, but now he needs to woo Beijing too. It’s a reminder how closely business is
intertwined with politics.
Less than a week after Huang visited President Donald Trump, Nvidia has won permission to sell H200 chips to China. The Nvidia chief’s arguments that it is wise to make China dependent
on American hardware look to have paid off. Agreeing to a 25% cut on sales for the U.S. government didn’t hurt either.
But securing the White House’s backing is only part of the solution. Nvidia still has to persuade China’s government to allow domestic companies to purchase its processors. Trump says Chinese leader Xi Jinping responded positively to the proposal, which involves more powerful artificial-intelligence chips than were previously permitted for export.
The appetite from China’s technology companies is definitely there. The Justice Department said on Monday it was cracking down on chip smuggling, with one businessman pleading guilty to smuggling more than $160 million worth of Nvidia H100 and H200 hardware. But that means Huang still has more persuading to do, with some lawmakers pushing for tougher measures to track where semiconductors go.
A prize asset for corporations is a
CEO with a sure touch in Washington. The lobbying skills of the heads of Netflix and Paramount Skydance are about to be tested as they go head-to-head in a bidding war for Warner Bros. Discovery. Convincing regulators about the competitive merits of their respective merger plans is as important as winning over shareholders.
If Netflix’s Ted Sarandos and Paramount’s David Ellison need any tips, they could do worse than going to Huang.
—Adam Clark
***What’s Ahead for Markets in 2026? From “Liberation Day” tariffs to torrid rallies in AI stocks and gold, this year has been full of surprises. Join us on Dec. 11 at noon for discussions with investment strategists and money managers about the outlook for the economy and markets in 2026—and how to position your portfolio for success. Sign up here.
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Trump Approves Nvidia H200 Chip Sales to China
President Donald Trump plans to allow Nvidia to sell a more advanced AI chip to China. That’s good news for investors, following months of uncertainty about whether the tech giant would be able to carry on making money from the
world’s second largest economy.
- “I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” Trump said late Monday in a post on Truth Social. Nvidia
didn’t immediately respond to a request for comment.
- Trump seemed to imply Nvidia will pay a 25% fee on any H200 sales to China, adding: “$25% will be paid to the United States of America.” That’s higher than the 15% rate Trump spoke about in August, when discussing the less advanced H20 AI chip in August.
- If the fee is imposed, it would be another example of the president striking an unusual agreement with a private company to make money for the government. Trump said the Commerce Department will finalize the details, and the government will allow fellow chip makers Advanced Micro Devices and Intel to do similar deals.
What’s Next: China has effectively banned the country’s technology companies from buying the H20. Trump said on Monday that President Xi had “responded positively,” but it remains to be seen whether Beijing will allow Nvidia to sell the H200 in the country. Nvidia has said its current financial guidance doesn’t assume any revenue from China.
—Tae Kim and George Glover
Paramount Raises Drama With Hostile Offer for Warner Bros.
Paramount made a hostile offer for Warner Bros. Discovery on Monday—the latest twist in an ongoing takeover saga that is likely to upend the Hollywood pecking order. But both Netflix’s bid, and Paramount’s rival offer drew the attention of the White House.
- Paramount said in a statement that its all-cash, $30-a-share offer for all of Warner Discovery was a better deal than Netflix’s for shareholders and more likely to be cleared by regulators. Paramount’s offer includes investments from the sovereign-wealth funds of Saudi Arabia, Abu Dhabi, and Qatar. President Trump’s son-in-law
Jared Kushner will also participate via his Affinity Partners fund.
- The hostile bid came days after Netflix had agreed to buy Warner’s streaming and studios divisions. Doubts about the Netflix-Warner deal emerged over the weekend, with Trump warning on Sunday that the acquisition “could be a problem” as it would give the streamer “a very big market share.”
- Trump then criticized Paramount, which owns the CBS television station, on Monday. He slammed the news show 60 Minutes for airing an interview with Rep. Marjorie Taylor Greene, who said the president had betrayed his voters. It wasn’t clear if that was a reaction to Paramount’s bid.
- Netflix may have to make an even more lucrative offer to one-up Paramount’s hostile bid. If Warner walks away from the deal, or accepts a rival offer from a rival party, it will owe Netflix $2.8 billion.
What’s Next: Warner has until Dec. 22 to decide if Paramount’s bid is a superior offer to Netflix’s deal. It could all come down to what investors think Warner Discovery’s legacy networks are worth. Paramount said on a conference call that the networks are worth $1 a share.
—George Glover and
