Nvidia CEO Jensen Huang revealed that U.S. trade restrictions have wiped out 95% of the company’s market share in China. During an interview with Citadel Securities, he warned that policies meant to harm China are also damaging American businesses.
“Before creating policies hostile to others, we should reflect on what truly benefits America,” Huang said.
He noted that Nvidia’s AI chips are at the center of the global technology race but have also become political tools in the U.S.–China trade conflict. While Huang hopes the world continues using U.S. technology, he emphasized that about half of the world’s AI researchers are based in China.
“I think it’s a mistake not to involve Chinese researchers in building AI using American technology,” he stated.
Huang added that the U.S. should take a balanced approach — maintaining technological leadership while allowing access to Chinese markets. However, he admitted that Nvidia is now “100% out of China.”
The decline began after the U.S. government restricted the export of Nvidia’s high-end AI chips to China in 2022. To comply, Nvidia created modified processors that met the new rules. Later, in 2024, the Trump administration blocked further AI chip sales to China without special licenses, though limited approvals were granted for some Nvidia and AMD chips.
In response, Chinese authorities discouraged local firms from buying modified Nvidia chips and restricted exports of rare earth minerals, key materials for U.S. tech industries. The U.S. then imposed additional tariffs on Chinese goods, intensifying the trade dispute.
“China is the second-largest computer market in the world with a vibrant ecosystem,” Huang said. “I believe it’s a mistake for the U.S. not to participate. Hopefully, we can continue to explain, inform, and see a policy change.”
He confirmed that Nvidia’s financial forecasts now assume zero sales from China but added, “If anything happens in China, it would be a bonus.”
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