NVIDIA CEO Jensen Huang’s visit to Beijing just days after Washington imposed fresh curbs on AI chip exports is a clear sign that President Trump’s trade strategy is “a masterclass in the law of unintended consequences,” says Nigel Green, CEO, deVere Group.
Huang’s surprise trip, at the invitation of a government-linked Chinese trade group, came immediately after the US administration suddenly blocked the export of NVIDIA’s H20 chip – a model specifically designed to meet previous American restrictions.
NVIDIA had expected the chip to remain eligible for sale in China following discussions between Huang and President Trump earlier this month.
“This is a stark example of how the current US trade stance is pushing countries and companies further toward China, not away from it – financially, economically, politically and diplomatically,” says Green.
“Trump’s aggressive and often unpredictable trade policies are eroding trust, triggering realignments, and accelerating the shift to a multipolar economic order that is likely to increasingly sidelines the US.”
The AI chip giant has warned of a $5.5bn earnings hit as a result of the restrictions, with major Chinese clients including Alibaba, Tencent and ByteDance left in limbo. But the financial damage goes far beyond a single company.
“By weaponising trade controls and blindsiding key US firms, the administration is encouraging global actors to build parallel systems and deepen ties with Beijing,” says Green.
“We’re seeing a steady, serious pivot. Business leaders are making pragmatic decisions to maintain access to the world’s second-largest economy – with or without Washington’s blessing.”
The yuan is being adopted in more cross-border transactions. BRICS nations are increasingly settling trade outside the US dollar.
Countries like Brazil and Saudi Arabia have expanded their holdings of Chinese currency. And even traditional allies are pulling back from alignment with Washington’s economic positions.
“This is what long-term fragmentation looks like,” continues Green. “The world isn’t turning its back on the US out of ideology – it’s doing so out of necessity, because America’s policy direction has become too erratic to rely on.”
The NVIDIA situation highlights the disconnect between political theatre and commercial reality.
After developing a chip specifically tailored for China to stay within US limits, the company now finds itself excluded from a key market on short notice – despite apparent assurances from the highest levels of government.
“That’s not strength. That’s instability,” says Green.
“Markets don’t respond well to sudden lurches in policy, especially when they involve core sectors like AI and semiconductors. This is about more than one earnings warning – it’s about global capital flows and trust in US leadership.”
In response to this unpredictability, countries are diversifying reserve holdings, expanding local settlement networks, and striking bilateral trade deals that bypass the dollar altogether.
At the same time, firms in tech, energy, and infrastructure are engaging more directly with Chinese institutions, even if doing so raises political risk in Washington.
“Jensen Huang showing up in Beijing with a smile, just after taking a multibillion-dollar hit from a White House directive, speaks volumes,” concludes Green.
“It’s not defiance – it’s realism. Business is being done where there’s opportunity and continuity. Right now, that’s increasingly outside the US sphere.
“The current approach might score points at rallies, but from a financial and diplomatic standpoint, it’s costing America influence every day.”
