The CEO of chipmaker Nvidia Jensen Huang on Thursday held talks with leaders in Beijing days after the United States curbed sales of its H20 artificial intelligence chips to China.

Nvidia this week said it expected a US$5.5 billion earnings hit this quarter due to a new US licensing requirement on graphics processing units with bandwidths similar to the H20, the primary chip it could legally sell in China.

Xinhua news agency reported that Vice Premier He Lifeng told Huang at a meeting that the Chinese market has huge investment and consumption potential.

In response, Huang expressed optimism about the nation's economic prospects and the willingness to continue to deepen the firm's presence in the Chinese market.

The Nvidia CEO also met Ren Hongbin, chairman of the China Council for the Promotion of International Trade, where he emphasised that China is a very important market for Nvidia and expressed the company's willingness to continue cooperation with the nation.

“We've grown up in China and China has watched us in the last 30 years…And so it's made us both better,” Huang said.

“So we're going to continue to make significant efforts to optimise our products that are compliant with the regulations and continue to serve the Chinese market," he added.

Nvidia shares have slumped 22 percent this year and its stock fell seven percent on Wednesday. (Additional reporting by AFP)