Embracing the controversial technology might help retailer Pop Mart adapt the fad before it fizzles, but the cultural consequences in the U.S. could be dire.

China's top leadership has recently pledged to curb "involutionary" competition amid intense price wars in the country.

At the Beijing Expo, Jensen Huang also announced plans for a new chip for Chinese clients that is designed for robotics and smart factories.

American chipmaking giant Nvidia (NVDA) says it plans to resume sales to China of an artificial intelligence chip that’s become part of a global race pitting the world’s biggest economies against each other.

But the fact that America or China will win this contest should not turn other countries into mere spectators. Even more important for their economies and societies is the other AI race, the one for “everyday AI ”: the deployment and diffusion of the technology across the whole of the nation.

The US has given chipmakers like Nvidia and AMD the opportunity to sell their chips to China again. Derrick Irwin, portfolio manager at Allspring Global Investments, says the US may have retain some dominance,

Nvidia's CEO Jensen Huang says the technology giant has won approval from the Trump administration to sell its advanced H20 computer chips used for artificial intelligence to China.

David Sacks said this would "deprive Huawei of basically having this giant market share in China."

China has invested billions into its artificial intelligence ambitions, aiming to be a leader in the global tech landscape. At the Beyond Expo in Macao, CNN’s Kristie Lu Stout explores the country’s latest breakthroughs and its growing influence in the world of AI.

Sources say firms are rushing to buy Nvidia's H20 AI chips, as the company said it planned to resume sales to China.

The rollout is expected to include pushing for speedier permitting for data center buildouts and promoting US tech exports.