Nvidia CEO Slams U.S. Chip Export Rules to China

Nvidia CEO Jensen Huang strongly opposes the U.S. export regulations for advanced semiconductors heading to China because these restrictions cause greater harm to American industries instead of the Chinese market.

During his Computex tech conference speech in Taipei Huang explained how the Trump-era export restrictions which Biden expanded have failed to deter China from establishing a domestic semiconductor industry. Huang stated that the core principles which guided the AI export control regulations proved to be completely incorrect.

Huang expressed his opposition to the export control measures following the Trump White House decision to eliminate several Biden-era restrictions. The administration altered its export rules because it aims to resolve national security concerns with economic competition issues while the US-Beijing relations continue to deteriorate.

According to Huang the Biden-era rules reduced Nvidia's Chinese market share from 95% to 50%. The global AI chip market leader Nvidia had to cease exporting high-performance GPUs to Chinese customers which prompted Beijing to start developing domestic semiconductor projects.

The White House plans to lift some trade restrictions for Saudi Arabia and other allies but simultaneously increases the regulatory burden on Chinese firms through expanded blacklists and licensing requirements. During May the U.S. Commerce Department imposed export restrictions on Nvidia chips while warning U.S. businesses about Huawei dealings which intensified a regulatory dispute that threatens to damage worldwide technology supply networks.

The Silicon Valley sector demonstrates growing discontent regarding U.S. policies because of Huang's public criticism. The companies face market restriction in one of the biggest markets worldwide while Chinese competitors expand their operations. The executive from Nvidia explained during a private meeting with reporters at the conference that these policies both restrict our business activities and strengthen our competitors.

The tech industry continues to split regarding the optimal way to handle the current geopolitical conflict. The expenses of maintaining the current containment measures have reached such levels that Nvidia needs to consider alternatives.