Nvidia CEO Expresses Concern Over US-China Trade Policies
Nvidia CEO Jensen Huang has voiced significant concerns about the ongoing trade restrictions between the United States and China, warning that policies harming China could negatively impact America as well. Speaking at the Citadel Securities Future of Global Markets 2025 conference, Huang revealed that Nvidia has lost its entire market share in China due to current export controls.
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“It’s important to be mindful that what harms China could oftentimes also harm America, and even worse,” Huang stated during the conference, according to reports. “Before we leap towards policies that are hurtful to other people, take a step back and maybe reflect on what are the policies that are helpful to America.”
Complete Market Share Loss in China
The Nvidia CEO disclosed that the company has gone from controlling 95% of the AI chip market in China to completely losing access, describing the situation as potentially detrimental to American interests. “We are 100% out of China… we went from 95% market share to 0%, and so I can’t imagine any policy maker thinking that’s a good idea,” Huang commented, as reported by industry sources.
Analysts suggest this dramatic shift represents one of the most significant impacts of the ongoing trade tensions between the world’s two largest economies. The situation has developed despite earlier indications that restrictions might be easing, when Nvidia reportedly received approval to sell its H20 AI GPUs in China earlier this year.
China’s AI Research Capabilities at Risk
Huang emphasized China’s substantial contribution to global artificial intelligence research, noting that the country accounts for approximately 50% of the world’s AI researchers. He expressed concern that cutting off these researchers from American technology could have long-term consequences.
“China has about 50% of the world’s AI researchers, incredible schools, incredible focus in AI, lots of passion around AI,” Huang stated. “And I think it’s a mistake to not have those researchers build AI on American technology.” Industry observers note that this perspective highlights the interconnected nature of global technological development.
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Stalled Progress and Security Concerns
According to recent reports, progress on Nvidia’s efforts to maintain a presence in the Chinese market has stalled amid what the company’s CFO described as “a little geopolitical situation between the two governments.” The situation has been complicated by security concerns from Chinese authorities that reportedly halted sales of H20 GPUs.
Sources indicate that potential buyers in China have been left waiting for chips that have yet to clear regulatory hurdles. Huang had previously expressed disappointment when China’s internet regulator banned some of the country’s largest tech firms from purchasing the China-specific RTX Pro 6000D, further complicating Nvidia’s market position.
Competitive Landscape Shifts
While Nvidia remains in what analysts describe as “AI chip limbo” regarding the Chinese market, reports suggest Chinese competitors like Huawei are making significant progress in developing domestic alternatives. This shift in the competitive landscape represents one of several industry developments that could reshape global technology markets.
The trade environment has become increasingly challenging, with recent announcements of new tariffs and export controls on critical software. These market trends suggest that resolution of the trade disputes may not be imminent, despite the potential economic consequences for companies operating in the sector.
Broader Implications for AI Development
The restrictions on AI chip exports to China come at a time when related innovations in artificial intelligence are accelerating globally. Industry experts suggest that fragmented technological ecosystems could emerge if current trade policies persist, potentially slowing the pace of AI advancement worldwide.
As the situation continues to evolve, sources indicate that Nvidia faces limited options beyond waiting for diplomatic resolutions between the US and Chinese governments. The company’s experience highlights how recent technology sector dynamics are increasingly influenced by geopolitical considerations beyond corporate control.
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