Nvidia CEO Jensen Huang: U.S. Chip Restrictions Have Halved China Market Share

Nvidia CEO Jensen Huang has sharply criticized U.S. chip export controls, calling them a “failure” that have severely hurt American business interests while accelerating China’s efforts to develop its own semiconductor technologies.

Speaking at the Computex tech conference in Taiwan, Huang said the restrictions have slashed Nvidia’s market share in China from 95% to 50%. He warned that if U.S. policy doesn’t shift soon, the country risks losing access to China’s massive market—and ceding leadership in the global race for artificial intelligence dominance.

“The current approach is backfiring,” Huang said. “Rather than weakening China, it’s motivating them to build alternatives faster.”

The Biden administration had initially introduced a tiered export rule in January, but later scrapped it under pressure from industry leaders and global partners. The White House has pledged to replace the policy, though no timeline has been announced.

Meanwhile, tensions remain high between Washington and Beijing. Earlier this week, China’s Commerce Ministry condemned the U.S. policy as “overreaching” and “bullying,” accusing the U.S. of interfering not only with exports but with China’s domestic chip usage.

Nvidia, caught in the middle, is trying to maintain relationships on both sides of the tech divide. The company recently expanded its office space in Shanghai—though it insists no intellectual property or chip designs will be transferred there—and continues to meet regularly with leaders in both the U.S. and China.

Last week, Huang joined former President Donald Trump on a diplomatic trip to Saudi Arabia, where Trump praised him as a “friend” and celebrated Nvidia’s expanding AI investments.

Despite his global engagements, Huang has made no secret of China’s growing capabilities. In testimony to U.S. lawmakers in April, he acknowledged China is quickly closing the gap in AI innovation. He also highlighted Huawei’s rapid advances in chip and networking technology, calling their progress “enormous.”

Still, Huang has reassured Chinese officials that Nvidia remains committed to the region. “We will continue to serve the Chinese market without wavering,” he reportedly said during meetings in April.

As U.S.-China tech tensions deepen, Nvidia is walking a geopolitical tightrope—modifying chip designs to stay compliant with U.S. law while trying to retain access to one of its most important international markets.

Huang’s message to U.S. policymakers remains urgent: rethink the strategy, or risk falling behind in the AI race.

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