Nvidia is ‘100% out of China’ — Jensen Huang warns what harms Beijing can often harm US ‘even in worse ways’
Nvidia CEO Jensen Huang expressed concerns about current US policy restricting China’s access to critical technologies used in artificial intelligence (AI), warning that such measures could harm the US economy and technological leadership.
In an interview with Kale Securities Jensen Huang on Tuesday called for a more “nuanced” approach to regulation, suggesting that policies aimed at harming China could sometimes backfire on the United States “in even worse ways.”
“Before you pursue policies that will harm other people, take a step back and think about what policies are perhaps beneficial to America,” Huang said.
The impact of export restrictions on Nvidia’s market share
Huang highlighted the serious business impact of current trade restrictions on Nvidia, whose processors are at the center of the global AI race and have become a key political bargaining chip in the US-China trade war.
He announced that Nvidia’s market share in China fell from an estimated 95% to 0%. “I can’t imagine any policymaker thinking this was a good idea, that whatever policy we implemented was causing America to lose one of the world’s largest markets.”
Striking a balance between the CEO’s goal of preserving U.S. technological superiority and maintaining access to China requires a nuanced approach, not an all-or-nothing approach, he said. For now, Nvidia is “100% out of China” and its financial forecasts are based on assumptions that China will remain out of the picture.
“If something happens in China, which I hope it will, that would be a bonus,” Huang said. Castle.
Why is access to China important?
Despite the current political climate, Jensen Huang emphasized the importance of maintaining connectivity with the Chinese ecosystem. Although he wants the world to rely on U.S. “know-how,” he said about half of the world’s artificial intelligence researchers are in China.
“I think it’s a mistake not to allow these researchers to build AI on American technology,” he added.
Tension between two countries
The Biden administration began restricting exports of Nvidia’s most advanced AI chips to China in 2022, prompting the company to design a processor that complies with the new limits. Luck reported.
However, the regulatory environment remained volatile. In April, Nvidia said the Trump administration had blocked unlicensed sales of some AI chips to China and would require them for future sales, then in August granted export licenses to China for some Nvidia and AMD chips for 15% of revenues.
But Chinese regulators have reportedly told domestic tech companies not to buy Nvidia chips designed to meet US export requirements.
Beijing has imposed strict limits on exports of rare earth elements, a critical material needed for the production of a wide range of advanced technologies, in retaliation for US export rules on artificial intelligence chips.
This led US President Donald Trump to announce an additional 100% customs duty on Chinese goods. Officials from both countries are expected to continue trade talks this week ahead of a meeting with Trump and his Chinese counterpart Xi Jinping scheduled for later this month.
“It’s a big market. China is the second-largest computer market in the world. It’s a vibrant ecosystem. I think it’s a mistake for the United States not to participate. So I hope we continue to explain, inform and give hope for policy change,” he said. Castle.
