Jensen is Taiwanese. Nvidia's chips are made in Taiwan, as are all the most advanced chips in the world -- including the chips in Apple and AMD products -- by TSMC. China wants to re-absorb Taiwan into itself, partially because they cannot match TSMC's geometries and they desperately need those geometries.
Speculation here, but it's conceivable that China gave Jensen an ultimatum: Give us your chips and we'll delay invading your homeland for a little while longer. Of course this would have been implied since China never says anything so direct.
Highly unlikely that China would direct a military threat at a tech CEO.
The more sane explanation is that Jensen Huang just wanted to capture more revenue.