TLDR
- Nvidia CEO Jensen Huang confirms company is completely blocked from Chinese market
- US export controls prevent sales of A100, H100, and H200 AI chips since 2022
- China’s internet regulator banned domestic firms from purchasing Nvidia’s RTX Pro 6000D servers
- Huawei and other Chinese chipmakers are filling the market gap with domestic alternatives
- Huang warns that roughly 50% of global AI researchers are in China
Nvidia has lost complete access to the Chinese market after US export restrictions forced the chipmaker out of one of its largest revenue sources. CEO Jensen Huang disclosed the company went from holding 95% market share to zero percent.
Huang spoke at the Citadel Securities Future of Global Markets 2025 conference about the situation. He stated Nvidia is “100% out of China” and cannot sell advanced AI processors.
The export controls began in 2022. They block Nvidia from selling high-performance chips including the A100, H100, and H200 models to Chinese customers.
Chinese Regulators Block Alternative Chips
Nvidia attempted to work around restrictions by developing the H20 GPU. This less powerful chip received US government approval for sale in China.
Chinese authorities responded by launching a security investigation into the H20. The Cyberspace Administration of China instructed major tech companies to halt testing and orders.
ByteDance and Alibaba were among the firms told to stop purchasing Nvidia products. China’s regulator also banned the RTX Pro 6000D server, which Nvidia designed specifically for the Chinese market.
Huang expressed frustration with the outcome. He said he cannot imagine policymakers believing it benefits America to lose such a large market.
Domestic Competitors Fill Market Gap
Chinese semiconductor companies are advancing quickly in Nvidia’s absence. Huawei Technologies has developed clustering methods to bypass Nvidia technology and released an ambitious chip roadmap.
Other domestic chipmakers are rushing to create alternatives. China is pursuing semiconductor self-sufficiency as a national priority.
The country hosts approximately 50% of the world’s AI researchers according to Huang. He argued it’s a mistake not to have these researchers using American technology.
Trade Tensions Show No Signs of Easing
The AI chip restrictions are part of broader trade friction between the US and China. President Trump recently announced 100% tariffs on Chinese goods related to rare earth metals.
New export controls on critical software were also implemented. These measures indicate the dispute will continue in the near term.
Nvidia’s CFO described the situation as “a little geopolitical situation between the two governments.” The financial impact on Nvidia is substantial despite the downplaying.
Huang called for more careful consideration of trade policies. He warned that measures harming China could also damage American interests.
The CEO said Nvidia will continue advocating for policy changes. He expressed hope for eventual access to the Chinese market.
For now, Nvidia remains locked out of China with no timeline for resolution. Chinese competitors like Huawei continue gaining ground while Nvidia waits for diplomatic progress between the two nations.
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