June 17 - Nvidia (NVDA, Financial) CEO Jensen Huang cautioned that U.S. export restrictions may strengthen China's tech industry rather than preserve U.S. AI leadership.
Huang said if the U.S. pulls back, companies like Huawei could fill the gap. “Huawei will have China covered,” he said, suggesting controls could accelerate China's self-sufficiency in semiconductors and AI.
The warning comes amid U.S.–China trade tensions. Tariffs on Chinese imports reached elevated levels before easing to around 55% after recent agreements. These measures have drawn retaliation from Beijing and weigh on the U.S. economy.
The World Bank now expects U.S. growth to slow to about 1.4% in 2025, and the OECD has trimmed its outlook for major economies as trade frictions persist. Consumers may face higher costs due to tariffs.
Huang noted that export curbs could reduce Nvidia's revenue from China, limiting funding for research and development and potentially affecting its competitive edge over rivals.
As U.S. policy seeks to balance national security with economic interests, his remarks highlight the unintended risk of accelerating competitors' capabilities while sidelining American firms in a key market.
