Nvidia CEO Jensen Huang had some harsh words to share about the U.S.’ export controls of AI to China. Huang reportedly called the export controls of AI to China “a failure.”
“All in all, the export control was a failure,” Huang said adding, “The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, has been proven to be fundamentally flawed.”
During the Biden administration, the U.S. implemented strict export controls to limit China’s access to advanced AI and semiconductor technologies. Starting in October 2022, the Department of Commerce restricted exports of high-performance chips and manufacturing tools, aiming to curb China’s military modernization and surveillance capabilities.
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Key Chinese firms, including Biren Technology and Loongson, were added to the Entity List, further tightening restrictions. Updates in 2023 and 2024 closed loopholes and targeted third-country smuggling routes. The measures were designed to protect U.S. national security, but they sparked backlash from industry leaders like Nvidia’s CEO, who called them a “failure” for harming U.S. firms and accelerating China’s domestic chip development. China condemned the controls as “bullying” and vowed retaliation. The policy highlights growing tech tensions between the two nations and raises questions about the long-term impact on global supply chains and innovation leadership.
Huang’s comments came after China on Monday urged the United States to “immediately correct its wrongdoings” and stop “discriminatory” measures following the U.S. guidance warning companies not to use advanced computer chips from China, including Huawei’s Ascend AI chips.
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In 2025, the Trump administration escalated restrictions on AI and semiconductor exports to China, aiming to curb Beijing’s access to advanced technologies. A major move included placing over 50 Chinese firms on the U.S. export blacklist, barring American tech sales without licenses. Trump also signed Executive Order 14179, repealing Biden-era AI guidelines, promoting development free from “ideological bias.” Export controls were tightened further, impacting products like Nvidia’s H20 AI chip, with the company forecasting $5.5 billion in losses.
The administration also pressured allies like Japan and the Netherlands to limit support to Chinese chipmakers by restricting services from Tokyo Electron and ASML. These actions drew strong pushback from the tech industry and sparked fears of global supply chain disruptions. China condemned the moves as protectionist and vowed retaliation. Overall, Trump’s 2025 policy marked a hardline stance to contain China’s AI ambitions and protect U.S. technological leadership.