Nvidia CEO Warns Biden's China Trade Limits Harm US Tech

The CEO of Nvidia said that the US is risking hurting its tech industry if it keeps limiting trade with China. He warned that this could lead to "enormous damage".

Jensen Huang said that new restrictions by the Biden administration limit their ability to export chips to China. Because of these restrictions, their business was not able to operate freely. The restrictions included advanced chips that were made with US technology. This made Jensen Huang feel like his hands were tied behind his back.

Huang said in an interview with the Financial Times that if China can't buy from the US, they will just build it themselves. China is a very important market for the technology industry, so the United States has to be careful.

Last August, Nvidia was told by US officials to stop sending two AI chips to China. They made a new product to meet government restrictions. Nvidia's chips are important for chatbots like ChatGPT that depend on large language models.

Biden made new rules in October. China can't get certain chips made with US tools. US officials don't want foreign companies to give China fancy chips or tools to make them.

Huang said be careful before doing more trade restrictions with China. He said this a few days before China stopped using products from Micron, which is an American chipmaker, in important stuff.

Huang said losing the Chinese market would be bad. There is no other place like China. American companies would get hurt if they couldn't trade with China.

Huang co-founded Nvidia in 1993. He's worth $27bn. Huang says Chinese companies are building chips. They're making chips to compete with Nvidia. Their chip products are for AI, gaming, and graphics.

He said stopping Chinese access would hurt the Chips Act. This Act is trying to make more fabs. The White House plans to give $52bn to this.

Huang said American tech industry might lose one-third of their market. This means American fabs may not be needed anymore. We will have too many fabs. Wrong regulations may harm tech industry.