Nvidia’s Jensen Huang Praises Trump’s Proposal to Lift Certain AI Chip Export Restrictions to China

The CEO of American chipmaker Nvidia, Jensen Huang, recently commended former President Donald Trump’s decision to amend U.S. restrictions on exporting artificial intelligence (AI) chips to China. He criticized the export controls established during President Biden’s administration, labeling them a “failure” that resulted in significant financial losses for U.S. companies, including Nvidia. Biden’s administration implemented a three-tiered export system designed to curb the global spread of advanced chips and restrict China’s access to AI technology, citing national security concerns.

However, opponents argued that these measures could diminish U.S. technological leadership. In a recent shift, the Trump administration announced plans to rescind some of these restrictions and substitute them with new regulations. Huang noted that Nvidia’s market share in China has plummeted from around 95% in early 2021 to 50% currently.

He argued that the export controls were based on a misguided belief that the U.S. held a monopoly on AI technology. As a result, Chinese firms, hindered from purchasing American chips, have turned to domestic sources, such as Huawei, which has driven local innovation. According to Huang, Chinese companies are becoming increasingly competent and motivated by government support in the face of export constraints.

He believes that the U.S. could reclaim its market leadership if the government recognizes the ineffectiveness of the current restrictions. With China’s burgeoning AI market projected to be worth $50 billion by next year, Huang urged the U.S. to accelerate technological diffusion rather than stifle it. Meanwhile, China’s state investment in chip production has reportedly exceeded $150 billion over the past decade.

The Chinese government has expressed its opposition to U.S. chip curbs, claiming they undermine bilateral agreements and are acts of protectionism.