As geopolitical tensions intensify, Nvidia is walking a tightrope between U.S. export controls and China’s increasingly assertive push for self-reliance in critical technologies. The chipmaker’s position as the dominant provider of AI semiconductors has forced it into delicate strategic maneuvers, especially in China, where demand remains strong but political scrutiny is mounting. To preserve a foothold in this crucial market, Nvidia has introduced weakened chip designs to comply with U.S. restrictions, explored revenue-sharing deals with local partners, and restructured its supply chain to insulate operations from further shocks. But as Washington tightens control and Beijing retaliates with security probes and tech nationalism, Nvidia’s China business is becoming increasingly complex to navigate—posing risks even as it chases continued growth from sovereign AI, regional cloud demand, and industrial digitalization across other geographies.