BEIJING/SHANGHAI, July 16 (Reuters) - Nvidia ( NVDA )

CEO Jensen Huang described artificial intelligence models from

Chinese firms Deepseek, Alibaba ( BABA ) and Tencent ( TCTZF )

as "world class" and said AI was "revolutionising" supply

chains, at an exhibition in Beijing on Wednesday.

Huang spoke briefly at the opening ceremony of a supply

chain expo, one day after the AI giant said it would once again

be able to sell its highly popular H20 chips in China.

Billionaire Huang is on his third visit to China this year,

days after meeting with U.S. President Donald Trump, as his firm

walks a tightrope between the world's two largest economies,

each of which is battling for global dominance in AI and other

cutting edge technologies.

Huang is also expected to hold a closed door media event in

Beijing later on Wednesday afternoon.

The CEO of the world's most valuable firm told state

broadcaster CCTV on Tuesday that the Chinese market is massive,

dynamic, and highly innovative, and it's crucial for American

companies to establish roots in China.

On Tuesday, U.S. Commerce Secretary Howard Lutnick said the

planned resumption of sales of Nvidia's ( NVDA ) H20 AI chips to China

are part of U.S. negotiations on rare earths.

Chinese companies have scrambled to place orders for the

chips, which Nvidia ( NVDA ) would then need to send to the U.S.

government for approval, the sources familiar with the matter

said. They added that internet giants ByteDance and Tencent ( TCTZF ) are

in the process of submitting applications.

ByteDance denied that it is currently submitting

applications. Tencent ( TCTZF ) did not respond to a request for comment.

Nvidia ( NVDA ) has also announced it is developing a new chip for

Chinese clients called the RTX Pro GPU that would also be

compliant with U.S. export restrictions.