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On Friday, Nvidia Corporation (NASDAQ:NVDA) CEO Jensen Huang downplayed U.S. national security concerns over selling advanced AI chips to China, arguing that the country already has a strong semiconductor ecosystem and that collaboration benefits both nations. Huang Pushes Back On US Security Concerns Speaking to reporters in South Korea, Huang said he remains optimistic about maintaining access to the Chinese market despite tightening U.S. export restrictions on advanced semiconductors used in artificial intelligence development, reported CNBC. He described China as an irreplaceable and “dynamic market,” highlighting that maintaining trade ties serves the interests of both the U.S. and China. Washington's export curbs, reinstated under President Donald Trump, are designed to block China's access to high-performance chips such as Nvidia's Blackwell GPUs. However, Huang told the publication that such concerns are misplaced, saying, "China makes plenty of AI chips themselves, and the Chinese military surely have plenty of access to chips that are created in China." He added that China has even "blocked" Nvidia's H20 chip, signaling that Beijing has no shortage of its own AI technology. Huang suggested that U.S. national security concerns are overstated, noting that China already possesses “plenty” AI technology and no longer relies heavily on American-made chips. See Also: XRP Drops 6% In 24 Hours: What's Going On? Jensen Huang Says Foolish To Underestimate Huawei Technologies Huang also warned against dismissing Chinese companies' technological capabilities, singling out Huawei as a serious competitor. Huang cautioned that it is “foolish to underestimate” China's strength and highlighted Huawei Technologies's remarkable competitiveness and technological drive. He said that Nvidia takes its Chinese competitors seriously, noting that the company's relentless pace of innovation is driven by its determination to stay ahead and shape the future of technology. China Market Collapse And South Korea Expansion Huang's remarks come as Nvidia's market share in China plunges from 95% to nearly zero following U.S. restrictions and China's directive to major firms like ByteDance and Alibaba Group (NYSE:BABA) to stop ordering Nvidia chips. Despite those losses, Nvidia is expanding elsewhere. Earlier this week, it announced a deal to supply more than 260,000 AI chips to South Korea, including to Samsung Electronics Co. (OTC:SSNLF), Hyundai Motor (OTC:HYMTF) (OTC:HYMLF) and SK Group. Benzinga's Edge Stock Rankings place Nvidia in the 97th percentile for Growth — click here to see how it stacks up against BABA and other leading semiconductor players. Read Next: Nvidia Effect: Key Suppliers Have Already Sold Out AI Memory Chips For 2025 Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock
