America Feels the Sting, China Retaliates Even More Fiercely
Jakarta, CNBC Indonesia - The United States’ (US) policy of controlling technology exports to China has not resulted in a clear victory for the Donald Trump administration. On the contrary, domestic companies have been negatively affected by the policy.
One example is Nvidia. The chip giant now has a zero per cent market share in China.
“In China, our competitiveness has now dropped to zero,” said Nvidia CEO Jensen Huang, quoted from Tom’s Hardware, Tuesday (5/5/2026).
Huang even described the US protectionist policy as a boomerang. Policies should be made by following the times, he added.
“Surrendering the entire Chinese market might not make strategic sense, so I think it has largely become a boomerang. It might have made sense at the time, but policies need to be dynamic and follow the times,” he explained.
“It’s safe to say that the presence of American chip companies and others in China makes a lot of sense,” he added.
Huang also said that China will still excel even without leading AI GPUs and software from the US. This is because China is a formidable competitor in the latest AI models.
China, he said, has extraordinary talent that is the nation’s treasure. They are experts in science and mathematics, as well as a number of local AI researchers who are also exceptional.
“They have cheaper energy. They have extraordinary talent,” said Huang.
China is also accelerating its desire to rely on its domestic strength. This is all thanks to the US export controls, which Huang called strategically counterproductive.
In fact, the US administration has widely opened exports of advanced H200 chips made by Nvidia to China. However, Trump’s softening stance occurred when China had already accelerated its domestic industry development.
China also refuses to accept US chip offers with open arms. As a result, H200 chip sales to China have not yet taken place and face many obstacles. It can be said that this is the double-edged sword created by the US itself. China’s revenge retaliation turns out to be more vicious.