I think the United States' export control policy against China is wrong. In order for the United States to lead in the artificial intelligence (AI) industry, it must maximize the dissemination of its technology, as it has done by abolishing the 'AI Diffusion Rule.'
Jensen Huang, Chief Executive Officer (CEO) of NVIDIA, said on the 21st during a media briefing at the Mandarin Hotel in Taipei, Taiwan, that "China is a market with a dynamic and excellent ecosystem of talented individuals." CEO Huang is participating in the Computex 2025, Asia's largest IT and computing exhibition, which runs until the 23rd, giving keynote addresses, conducting booth tours, and holding media briefings.
CEO Huang explained that the export controls have caused significant losses in the Chinese market. He said, "We can no longer ship the H20 product to China due to export restrictions, and as a result, we had to write off billions of dollars worth of inventory," noting that "this amounts to the total revenue of some semiconductor corporations."
He added, "China is the second-largest market, and not having these opportunities means the United States cannot enjoy job creation and industrial sustainability," noting that "NVIDIA's market share in China was around 95%, but it is now 50%, with the remainder taken by local corporations. I hope to see more Chinese AI models developed based on NVIDIA technology."
CEO Huang explained that China's AI industry and technological capabilities have enormous potential. He stated, "More than 50% of researchers worldwide are in China, and their skills are among the best in the world," adding that "AI models like DeepSeek were built based on NVIDIA technology. The fact that this technology has been opened up as open-source is a tremendous gift to humanity."
He added that "NVIDIA is competing fiercely in the Chinese market," stating that "China has a very vibrant ecosystem, and its software capabilities are incredibly strong. China's software technology is not inferior to that of any other country in the world."
CEO Huang reported that he is struggling with developing a product to replace the H20, which has been banned from sale due to export restrictions in China. The H20 was the only AI chip that NVIDIA could legally sell in China. However, the Trump administration has recently restricted the export of the H20. He said, "I don't know how to lower the performance of the H20 further." There have been speculations that NVIDIA might develop a redesigned chip with reduced performance for the H20.
He expressed support for the Trump administration's official repeal of the 'AI Diffusion Rule' implemented by the Biden administration. CEO Huang noted, "If the United States wants to lead in AI technology, it must maximize the dissemination of its technology. The dissemination of AI technology is not just America's concern."
He further stated, "For such rules to be effective, the United States needed to be the only country providing AI technology, but the reality is not that. Other countries are also continuously developing excellent AI models," adding that "President Trump would have known this as well."
The Biden administration took measures through the 'AI Diffusion Rule' to limit corporations to export up to 1,700 AI semiconductors annually to the Middle East without government approval. However, the Trump administration decided on the 13th to fully repeal it. The U.S. Department of Commerce stated, "The Biden administration's AI Diffusion Rule would downgrade many countries to tier-2 trade partner status, which would harm diplomatic relations." In response, the U.S. government has officially stated it will repeal the regulation and announce a substitute regulation in the future.