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Nvidia CEO Jensen Huang has labeled the US chip export controls as a “failure” because they unintentionally boosted Chinese domestic technology development. At Computex tech forum in Taipei Huang declared that export restrictions on US chips have actually energized Chinese domestic technology companies. According to Huang China maintains a thriving tech sector which benefits from its large number of AI researchers and software professionals. The export controls provided Chinese companies with both government support and national energy to accelerate their domestic technological advancement according to Huang. The Biden administration started and since then Nvidia has lost 95% of its AI chip market share in China which now stands at 50%. The US chip export policy was established to stop China from employing sophisticated American semiconductors for military or AI superiority goals. The policy has caused significant financial damage to Nvidia and other companies through lost sales. During his Beijing visit Huang met DeepSeek founder Liang Wenfeng to discuss developing chips which would meet the new US regulatory requirements. The US government issued new warnings to nations about using Chinese AI chips especially Huawei's Ascend series even though it recently relaxed some Trump-era export rules. The United States faces "bullying and protectionism" accusations from China which also warns that entities enforcing these rules could violate Chinese law.

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