Nvidia CEO Criticizes U.S.-China Trade Restrictions, from 95% to 0% in China

Nvidia CEO Jensen Huang criticized U.S. export restrictions that have eliminated the company’s presence in China, erasing a 95% market share. He warned the policy harms both nations and benefits Chinese competitors like Huawei. Huang highlighted China’s pivotal role in global AI innovation, with 50% of the world’s AI researchers. Amid escalating U.S.-China tensions, Nvidia’s future in the Chinese market remains uncertain, with both superpowers pursuing conflicting tech strategies.

Jensen Huang, the founder and CEO of Nvidia, has voiced strong criticism of U.S. export restrictions that have effectively barred the company from operating in China, a move he believes has deeply impacted both nations and jeopardized America’s technological edge. Speaking at the Citadel Securities Future of Global Markets 2025 event in New York earlier this month, Huang expressed his frustration with the policy, stating that it has erased Nvidia’s once-dominant presence in one of the world’s largest tech markets.

"We went from a 95% market share to zero," Huang said during the event, which was later made public via video. "I can’t imagine any policymaker thinking this is beneficial—that a policy has led America to forfeit one of its largest markets entirely."

Nvidia’s Financial Outlook Excludes China

Huang revealed that Nvidia’s financial projections now exclude any revenue from China. "For our shareholders, we’re assuming zero contributions from China in all forecasts. If anything changes in the region—which I certainly hope it does—it will simply be an unexpected upside," he remarked.

Despite the restrictions, Huang emphasized that China remains a pivotal player in the global tech landscape as the world’s second-largest computer market and home to a thriving ecosystem of innovation. He warned that excluding U.S. companies from engaging with China could have long-term consequences for both nations. "I think it’s a mistake for the United States not to participate in such a crucial market," he cautioned.

Restricted AI Chip Exports: A Double-Edged Sword

Nvidia’s advanced AI chips, including the A100, H100, and H200, have been subject to export bans to China since 2022. Although the company gained approval to sell a less powerful H20 chip tailored for the Chinese market, Beijing has expressed concerns over its security implications. This dual pressure—U.S. export controls and China's push for tech self-reliance—has left Nvidia caught in the crosshairs of a geopolitical standoff.

Huang reiterated that these restrictions inadvertently benefit Chinese competitors, such as Huawei Technologies, while potentially undermining America’s own leadership in the tech sector. "What harms China often ends up harming America as well—and sometimes even more," he explained.

The Role of China in Global AI Innovation

Highlighting the critical role of Chinese developers in the AI industry, Huang underscored the importance of collaboration. "China is home to roughly 50% of the world’s AI researchers. These developers are essential to the progress of any software industry. Cutting them off from American technology is a mistake," he said.

The Nvidia CEO expressed hope for a policy shift, emphasizing the need for continued dialogue and understanding. "We’ll keep striving to explain the consequences and advocate for change," Huang stated.

Increasing Tensions Impact Nvidia’s Future in China

Huang’s remarks come amidst escalating tensions between the U.S. and China. Recently, Beijing reportedly advised major Chinese tech companies to halt testing and purchasing Nvidia’s restricted chips, citing national security concerns. According to sources cited by the Financial Times, the Cyberspace Administration of China issued this directive following allegations that Nvidia had violated the country’s antitrust rules.

These developments reflect China’s broader strategy to reduce reliance on foreign technology and boost domestic production. Companies like Huawei are expected to fill the gap left by Nvidia’s absence, further intensifying the competition in the semiconductor industry.

A Balancing Act in Geopolitical Uncertainty

Huang acknowledged the broader geopolitical complexities at play, recognizing that the U.S.-China rivalry extends far beyond Nvidia’s business concerns. "We can only serve a market if the country allows us to," he remarked during a press briefing in London. While expressing disappointment, Huang appeared resigned to the situation. "They have larger agendas to resolve. We’ll remain patient and supportive of the Chinese government and companies as they navigate these challenges."

Nvidia’s meteoric rise as a global leader in AI-driven hardware has made it a key player in the ongoing generative AI revolution. However, the escalating restrictions and trade barriers from both Washington and Beijing risk sidelining the company in one of its most significant markets. For now, Nvidia’s future in China hangs in the balance, as both superpowers grapple with their competing priorities in the tech sector.