Nvidia CEO Jensen Huang said the company has completely lost its access to the Chinese market due to U.S. export restrictions, wiping out what was once a 95% market share. Speaking at a Citadel Securities event, Huang raised concerns about the long-term impact of the policy, arguing that losing such a large market could ultimately harm the United States more than it helps.
In 2022, the Biden administration introduced export rules that blocked sales of Nvidia’s most advanced AI chips to China. Earlier this year, under the Trump-era policies still in effect, further restrictions were imposed. Some limited exports were allowed under license, but only in exchange for 15% of the revenue. As a result, Nvidia no longer includes China in its future business forecasts.
China’s Response
Following the U.S. restrictions, Chinese authorities reportedly advised local tech firms not to use Nvidia chips designed to comply with U.S. export rules. Beijing also placed stricter controls on the export of rare earth materials used in chip production. These moves effectively removed Nvidia from one of its largest international markets.
U.S. Risks Falling Behind
Huang emphasized that about half of the world’s AI researchers are based in China and warned that restricting their access to U.S. hardware could slow American influence in the field. He called the export policy short-sighted and said it prevents Chinese companies from building AI systems on U.S. platforms, potentially leading them to develop alternative solutions independently.
The loss of access to China, a market that once contributed up to a quarter of Nvidia’s data center revenue, marks a significant shift for the chipmaker. Huang said while Nvidia is still expanding globally, the sudden drop in Chinese business has reshaped how the company views growth opportunities abroad.
He added that regaining market access in China would now be a bonus rather than a planned outcome, given the current policy and market conditions.