The CEO of Nvidia Corp., Jensen Huang, warned that American export controls on high -end chips have failed to blunt the technological progress of China, with the country’s artificial intelligence ecosystem quickly advancing to a point where it could no longer be taken for granted.
Instead of slowing down the rise of China, argued Huang, sanctions strengthen interior alternatives and eroding the technological gap formerly played by American companies.
“Chinese competitors have evolved,” said Huang in an interview with Bloomberg Television on Wednesday. “Huawei has become quite great.” He added that large Chinese companies like tence “double the quadruples capacities each year”, warning that the volume and sophistication of their systems increase sharply.
Register For TEKEDIA Mini-MBA Edition 17 (June 9 – September 6, 2025)) Today for early reductions. An annual for access to Blurara.com.
Tekedia Ai in Masterclass Business open registration.
Join Tekedia Capital Syndicate and co-INivest in large world startups.
Register become a better CEO or director with CEO program and director of Tekedia.
Huang’s remarks highlight an increasing concern in the American semiconductor industry that Washington’s restrictive measures are not only ineffective but counterproductive, producing American companies from one of the most lucrative world markets while pushing China to technological autonomy.
Huawei’s success as proof of challenge
Huang’s evaluation is supported by growing evidence that Chinese companies challenge American restrictions and accelerate their development of domestic AI chips, especially since American suppliers like Nvidia are prevented from sending high performance processors to China.
Huawei, a central target of American sanctions, has become a leading example of the Chinese challenge. The technology giant, long on a blacklist by Washington, recently unveiled a comparable IA chip in performance at the NVIDIA H200, a GPU which until recently was among the most powerful available. This represents a dramatic capacity jump for a business formerly considered to be hampered by American restrictions.
As part of the US export rules updated, even the downside of Nvidia, the H20, cannot be shipped to China.
Huang said the company currently had no substitute for the Chinese market. Any future alternative would require the approval of the United States government, further complicating Nvidia’s position.
The support of Huang’s warning is a financial report on Thursday, which revealed that the largest Chinese technological companies – Alibaba, Tencent and Baidu – have already started the process of passing to local semiconductors. According to industry leaders cited by the FT, these companies test national alternatives in response to the decrease in Nvidia flea stocks and increasingly strict American export rules.
This decision marks an important pivot in the Chinese technological industry, motivated not only by the need but also by a broader thrust directed by the State for the independence of semiconductors. Companies are actively obtaining themselves from national suppliers such as Huawei and other emerging players, hoping to meet the growing demand for AI -generating applications on the Chinese market.
A market of lost billions
Nvidia’s challenges are enormous. Huang said the company plans to lose up to $ 8 billion in sales this quarter only because of its inability to provide china fleas – the world’s largest market for AI infrastructure.
“You cannot underestimate the importance of the Chinese market,” he said. “It is the home of the world’s largest population of IA researchers.”
The NVIDIA GPUs have long been the gold stallion for the formation of advanced AI models, but with American policy which now locks them outside China, the company risks giving market share to national players who formerly depended on American equipment.
Risks for the management of America AI
Huang’s concern goes beyond Nvidia’s bottom line. He warned that the American export policy threatened the broader ecosystem of American technological leadership.
“We want all AI world researchers and world researchers to use American technology,” he said. But this ambition is in contradiction with the current position of Washington, which has effectively alienated a wide bunch of global talents and companies.
In his interview, Huang also responded to recent reports that the United States revokes visas for Chinese students involved in sensitive areas of research. He noted the importance of immigration to innovation, recalling his own trip as an immigrant from Taiwan to the United States.
“Listen, I am an immigrant. I know that many immigrants who came to the United States to build a big life, and many of us have greatly contributed to technology industry in the United States,” he said. “We would like the most brilliant to come here.”
Currently, Washington’s export policy has created an involuntary consequence: instead of freezing China out of the AI breed, it has triggered faster than expected maturation of the own capacities of China. Huang’s comments reflect an increasing achievement in industry that, although the geopolitical battle on technology continues, China discreetly shrinks the gap – and American companies remain at the sidelines.
