Nvidia boss claims US chip policy has backfired in China

In May 2025, during a press conference at Computex in Taipei, Taiwan, Nvidia CEO Jensen Huang criticized recent U.S. export policies that restricted the sale of advanced computing chips to China. Huang labeled these regulations a 'failure,' asserting that they have unintentionally harmed American companies while promoting the growth of domestic alternatives in China. He highlighted a significant decline in Nvidia's market share in China, plummeting from 95% in early 2022 to around 50% currently due to these export curbs. He noted that Chinese firms have increasingly invested in home-grown technologies as a direct response to the limitations imposed by U.S. policies. The U.S. export regulations were initially introduced during Donald Trump's presidency, citing concerns over the potential military applications of advanced technology. Under the Biden administration, these restrictions were tightened, further maintaining limits on sales to China and adding more complex hurdles for U.S. tech companies. Such actions have drawn criticism from within the tech industry, as they feel the restrictions threaten their international business opportunities. In Huang's view, the fundamental assumptions behind these policies are flawed and counterproductive. The ongoing conflict surrounding export restrictions exists amid wider tensions between the U.S. and China, where national security concerns clash with economic interests. Recently, Biden’s administration announced intentions to craft new licensing requirements regarding exports of specific Nvidia chips and other advanced technologies, while also alarming U.S. firms about potential repercussions of utilizing chips from Chinese tech giant Huawei. This has incited backlash from Beijing, which accuses the U.S. of undermining prior agreements made during trade talks earlier in the month. In response to the restrictions, Nvidia is planning to launch a new AI chipset in China, slated for mass production in June 2025. This upcoming chip, expected to be priced between $6,500 and $8,000, will be a modified version of Nvidia's Blackwell architecture and significantly cheaper than the recently restricted H20 model. By targeting a lower price point, Nvidia aims to regain a foothold in the Chinese market despite the adverse effects of U.S. regulations. Huang emphasized that these restrictions have forced Nvidia to shun billions in sales and write off significant inventory. As such, the company is exploring flexible strategies to adapt its product lineup to comply with export requirements while remaining competitive in China’s lucrative tech market.