Nvidia CEO Jensen Huang has voiced concerns over US policies limiting China’s access to critical AI technologies, warning that these measures could backfire and harm American interests. In an interview with Citadel Securities, Huang advocated for a more nuanced regulatory approach, emphasizing the need to carefully weigh the broader impact of policies on both the US and global technology markets.

Huang revealed that Nvidia’s market share in China has plummeted from roughly 95% to 0%, leaving the company entirely out of one of the world’s largest AI markets. He stated: “It is hard to imagine any policymaker considering it a good idea for the US to lose access to China.” Nvidia’s future engagement with China, Huang noted, would be considered a bonus rather than a central part of forecasts.

The executive highlighted the importance of collaboration with Chinese researchers, noting that around half of the world’s AI experts are based in China. Excluding them from American technology platforms could hinder innovation globally.

The tension traces back to US export restrictions introduced in 2022, limiting the sale of Nvidia’s most advanced AI chips to China. While Nvidia redesigned some chips to comply, regulatory uncertainties persisted. By August 2025, certain chip sales were allowed with licensing conditions that captured 15% of revenues. In response, Chinese authorities reportedly discouraged domestic firms from purchasing US-compliant Nvidia chips. Beijing also imposed rare earth export restrictions, critical for technology manufacturing, prompting the US to announce additional tariffs on Chinese goods.

Huang concluded by stressing the strategic importance of China, describing it as the second-largest computer market worldwide and a vibrant ecosystem crucial for AI innovation. He called for policies that balance US tech leadership with continued participation in global markets.