The connection they imply is doubtful. They give no date for the Nvidia negotiation, but (assuming it isn't misrepresented) it must have taken a lot of time (enough that the Chinese could pick something from AMD in the end). And I doubt Linus heard about it, either (the “behind the curtain reason for Linus' frustration” idea must have come from someone unfamiliar with him or the video of the event). The only commonality is that both find Nvidia hard to work with, in different contexts.

My interpretation is that Nvidia caused the Chinese to lose face, and this what will doom them to lose future contracts. I've been living here in China for 6 months now, and the social aspects of business, like face, are really nuanced, but so so important. I don't really understand them yet.