Nvidia CEO Jensen Huang has sharply criticized U.S. export controls on advanced AI chips, saying they have erased the company’s presence in China and damaged American interests.

Speaking at a Citadel Securities event on October 6, 2025, Huang said Washington’s policies have turned Nvidia’s products into “political bargaining chips,” undermining both U.S. industry and innovation.

“We Went from 95% to 0%”

In remarks released, Huang said:

At the moment, we are 100% out of China. We went from 95% market share to 0%. I can’t imagine any policymaker thinking that’s a good idea — that whatever policy we implemented caused America to lose one of the largest markets in the world.

Nvidia CEO Jensen Huang

He added that all of Nvidia’s forecasts now assume “zero for China,” calling any future recovery “a bonus.”

Huang described the situation as “a mistake for the United States not to participate” in what he called the world’s “second-largest computer market.”

U.S. Export Controls and Policy Timeline

Since 2022, Washington has imposed escalating bans on exporting high-performance AI chips to China to limit its military and AI capabilities. Key measures include:

• 2022: Restrictions on Nvidia’s A100 and H100 chips.
• April 2025: Trump administration blocks sales of the H20 chip.
• June 2025: Proposal to lift the ban in exchange for Chinese rare earth exports.
• August 2025: Limited licenses granted, but with 15% of revenues from sales directed to the U.S. government.

China responded with export limits on rare earth materials and an antitrust probe into Nvidia’s 2020 Mellanox acquisition, effectively severing the company’s access to its former top market.

Financial and Strategic Impact

Before the bans, China accounted for 20–25% of Nvidia’s data center revenue. In the second fiscal quarter of 2026 (ending July 2025), revenue from China and Hong Kong fell 24.5% year-over-year to $2.77 billion, while overall data center revenue hit $41.1 billion.

Huang said Nvidia’s current projections exclude any Chinese sales entirely.

Nvidia has denied Chinese claims of security risks in its chips and continues to face scrutiny from Beijing’s Cyberspace Administration.

China’s Response: Building Its Own AI Chips

Despite the U.S. bans, China’s domestic tech sector has accelerated AI chip development. Huawei’s Ascend series and startups like Cambricon have gained ground, with Cambricon reporting a 4,300% revenue surge in August 2025 as local firms replaced Nvidia hardware.

Research groups like DeepSeek have also shifted to training models on Chinese processors, achieving mixed results but reducing reliance on U.S. technology. Analysts say this signals the creation of a parallel AI ecosystem under Beijing’s control.

Huang urged U.S. policymakers to adopt “more nuanced” strategies, warning that restrictive measures risk isolating American innovation. Half of the world’s AI researchers are in China. Policies should be helpful to America — not just hurtful to others.” he said.

Experts note that U.S. sanctions have historically spurred self-reliance rather than containment, echoing Cold War dynamics. If current trends persist, the U.S. could lose leverage in the global AI race while China’s independence in chip technology continues to grow.