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U.S. Export Ban Wipes Out Nvidia’s China Market, CEO Says

Published: Oct. 18, 2025  4:06 a.m.  GMT+8
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Since 2022, the U.S. has prohibited exports of Nvidia’s most powerful AI chips to China
Since 2022, the U.S. has prohibited exports of Nvidia’s most powerful AI chips to China

Nvidia Corp.’s once-dominant presence in China’s artificial intelligence chip market has evaporated, with its share plunging from 95% to zero, according to founder and chief executive Jensen Huang. Speaking at a Citadel Securities event on Oct. 6, Huang attributed the collapse to U.S. export controls and called the policy a “mistake” that could be counterproductive to American interests.

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This is an AI-generated English rendering of original reporting or commentary published by Caixin Media. In the event of any discrepancies, the Chinese version shall prevail.
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  • Nvidia’s China AI chip market share dropped from 95% to zero due to U.S. export controls, according to CEO Jensen Huang.
  • U.S. restrictions since 2022 on Nvidia’s high-end AI chips have led Chinese firms to switch to domestic alternatives; revenue from China and Hong Kong fell 24.5% to $2.769 billion.
  • Nvidia faces rising regulatory scrutiny in China, including an anti-monopoly probe related to its Mellanox acquisition.
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Who’s Who
Nvidia Corp.
Nvidia Corp.'s presence in China's AI chip market has collapsed to zero due to US export controls, according to CEO Jensen Huang. He called the policy a "mistake" that harms American interests. The US has prohibited exports of Nvidia's most powerful AI chips to China since 2022. The company's revenue from mainland China and Hong Kong dropped significantly, reflecting the impact of these restrictions.
Cambricon Technologies Corp. Ltd.
Cambricon Technologies Corp. Ltd. (寒武纪) is a Chinese chip stock that has seen a rally due to the rising policy risks in the U.S.-China tech standoff. Chinese cloud and data center companies are accelerating their pivot towards local alternatives, which benefits domestic chipmakers like Cambricon.
Mellanox Technologies Ltd.
Mellanox Technologies Ltd. is an Israeli networking company that Nvidia acquired for $6.9 billion in 2020. This acquisition is currently under investigation by China's State Administration for Market Regulation for potential violations of the Anti-Monopoly Law.
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What Happened When
Since 2022:
The U.S. prohibited exports of Nvidia’s most powerful AI chips (A100, H100, H200) to China.
April 2025:
The Trump administration restricted exports of Nvidia's H20 chip to China.
By June 2025:
The Trump administration reportedly offered to lift the H20 ban in exchange for renewed Chinese exports of rare earth elements.
July 7, 2025:
A bipartisan group of U.S. lawmakers introduced the Chip Security Act, aiming to require location verification for AI chips.
July 27, 2025:
Nvidia’s second quarter of fiscal 2026 ended, reporting a 24.5% year-on-year revenue drop in China and Hong Kong.
July 31, 2025:
The Cyberspace Administration of China summoned Nvidia to discuss security concerns around the H20 chip.
Aug. 6, 2025:
Nvidia stated its chips do not contain backdoors, kill switches, or monitoring software; later secured an export license for H20, agreeing to pay 15% of Chinese sales revenue to the U.S. government.
As of Aug. 27, 2025:
Nvidia confirmed during its earnings call that shipments of H20 chips had yet to resume to China.
Sept. 15, 2025:
China’s State Administration for Market Regulation announced a formal investigation into Nvidia’s $6.9 billion acquisition of Mellanox Technologies Ltd. completed in 2020.
Oct. 6, 2025:
Jensen Huang, CEO of Nvidia, stated at a Citadel Securities event that Nvidia's market share in China has dropped from 95% to zero due to U.S. export controls.
Oct. 16, 2025:
Remarks from Jensen Huang at the Oct. 6 event were released, confirming Nvidia's complete exit from the Chinese AI chip market.
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