TLDR
- Nvidia’s market share in China dropped from 95% to 0% due to US export controls on AI chips
- CEO Jensen Huang says the company is “100% out of China” and cannot sell high-performance AI chips like A100, H100, and H200 models
- China’s Cyberspace Administration banned domestic tech companies from buying Nvidia’s RTX Pro 6000D servers
- Chinese competitors like Huawei are filling the gap with domestic AI chip alternatives
- Huang warns that policies harming China could also harm America, citing China’s 50% share of global AI researchers
Nvidia CEO Jensen Huang confirmed the company has been completely shut out of the Chinese market. The semiconductor giant’s market share fell from 95% to zero due to US export controls that began in 2022.
Huang made these comments at the Citadel Securities Future of Global Markets 2025 conference. He expressed disappointment with current trade policies between the US and China.
The restrictions prevent Nvidia from selling its most advanced AI chips in China. These include the A100, H100, and H200 models used for artificial intelligence applications.
Export Control Impact
US government export bans on AI chips initially showed signs of loosening earlier this year. Nvidia received approval to sell its H20 GPU, a less powerful chip designed for the Chinese market.
However, progress stalled when Chinese authorities launched a security investigation into the H20. The Cyberspace Administration of China told major tech companies to stop testing and ordering the chips.
Companies affected by the ban include ByteDance and Alibaba. The Chinese regulator also prohibited purchases of Nvidia’s RTX Pro 6000D servers, which were specifically designed for China.
Huang stated he cannot imagine any policymaker thinking the current situation is beneficial. The policies caused America to lose one of its largest markets.
Chinese Competition Grows
While Nvidia remains blocked from China, domestic competitors are advancing quickly. Huawei Technologies has made progress with clustering methods and manufacturing techniques to bypass Nvidia’s technology.
Huawei recently unveiled an ambitious AI chip roadmap. Other Chinese semiconductor companies are also rushing to develop domestic alternatives.
China controls roughly 50% of the world’s AI researchers according to Huang. The country has top schools and strong focus on artificial intelligence development.
Trade Tensions Continue
The ongoing dispute between the US and China extends beyond AI chips. President Trump recently announced a 100% tariff on Chinese goods related to a rare earth metal dispute.
New export controls on critical software were also implemented. These measures suggest trade friction between the two countries will continue.
Nvidia’s CFO described the situation as “a little geopolitical situation between the two governments.” Despite the characterization, the impact on Nvidia’s business is substantial.
CEO’s Policy Concerns
Huang urged caution with policies that harm other countries. He suggested such policies could end up hurting America as well.
The CEO believes it’s a mistake not to have Chinese researchers building AI on American technology. He advocated for policies that help America rather than simply hurt other nations.
Huang said the company will continue to explain its position and hopes for a policy change. For now, Nvidia remains completely locked out of the Chinese market with no clear path forward.
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