Nvidia CEO Slams U.S. AI Chip Export Curbs to China as Strategic Misstep

Nvidia CEO Jensen Huang criticized the U.S. government’s export controls on AI chips to China, calling the policy “a failure.” Speaking at Computex 2025 in Taipei, Huang said, “The fundamental assumptions that led to the AI diffusion rule have been proven fundamentally flawed.”

The U.S. restrictions, aimed at curbing China’s access to cutting-edge artificial intelligence chips, have backfired, according to Huang. Rather than stalling progress, the export ban pushed Chinese firms to turn to domestic semiconductor designers like Huawei. The move also accelerated China’s efforts to build a self-reliant chip supply chain, reducing dependence on U.S.-made components.

Huang revealed that Nvidia’s market share in China has plummeted to 50%, down from 95% when President Joe Biden took office. The shift underscores the significant impact of U.S. policies on global chip competition and supply chains.

His comments followed China’s sharp response earlier this week to the latest U.S. guidance warning companies not to use advanced Chinese AI chips, including Huawei’s Ascend processors. Beijing urged Washington to “correct its wrongdoings” and end what it described as “discriminatory” practices, warning of firm countermeasures if U.S. actions continue to harm Chinese interests.

The escalating chip tensions also threaten to undermine recent efforts to stabilize U.S.-China trade relations. A statement from China’s commerce ministry noted that the latest U.S. move violated the spirit of high-level negotiations held in Geneva.

As global tech firms navigate shifting geopolitical dynamics, Huang’s remarks spotlight the unintended consequences of protectionist trade policies, especially in the high-stakes AI and semiconductor sectors. Nvidia remains a leading player in AI chips, but faces growing headwinds in key international markets due to regulatory friction.