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US Restrictions on AI Chip Exports to China Deemed Ineffective – Nvidia – DW – May 21, 2025

Nvidia CEO Jensen Huang stated that the export controls imposed by the United States on artificial intelligence chips and technology to China were unsuccessful, with companies resorting to locally-designed alternatives. Huang emphasized that if American-made chips are not accessible, companies are compelled to opt for the “second-best” option available.

The import restrictions on cutting-edge AI chips from the United States have compelled Chinese companies to source semiconductor products from domestic designers such as Huawei. This has also spurred China to robustly invest in and develop its technology supply chain, striving to minimize its reliance on foreign manufacturing.

According to Huang, who made these remarks at a tech event in Taiwan, the expertise and determination of local Chinese firms, coupled with enhanced governmental support since the introduction of export controls, have significantly fueled their technological advancements.

Nvidia has reportedly seen its market share in China’s AI chip sector decline from nearly 95% to 50% since the beginning of President Joe Biden’s term, while US efforts to control sophisticated chip exports to China are driven by security concerns regarding American leadership in AI and potential military applications.

Some restrictions were relaxed under former President Trump’s administration based on protests from countries about the denial of crucial technology necessary for AI development. Huang praised Trump’s approach to AI technology, suggesting he understood that US companies are not the sole providers of such innovation.

China has protested the US’s stance on advanced computer chips, including those from Huawei’s Ascend AI line, calling it a discriminatory measure that undermines previous agreements and vowing to take retaliatory actions if its interests are harmed.

Source: https://www.dw.com/en/nvidia-chief-calls-us-export-curbs-on-ai-chips-to-china-a-failure/a-72617920?maca=en-rss-en-all-1573-rdf

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