Posted on 10/20/2025 9:44:27 AM PDT by SeekAndFind
Nvidia, the American semiconductor giant, has seen its dominance in China’s advanced chip market vanish, with its market share dropping from 95% to Zero due to stringent US export controls, according to CEO Jensen Huang. Speaking at a Citadel Securities event in New York earlier this month, Huang revealed that Nvidia is completely barred from selling its high-performance AI chips, including the A100, H100, and H200 models, to Chinese companies since restrictions began in 2022.
A video of the interview was released recently. Huang expressed hope for a policy shift, stating, “We will continue to explain and inform and hold on to hope for a change in policy.” He emphasized that Nvidia’s exclusion from China not only harms the company but also has broader implications for both China and the U.S. “What harms China could oftentimes also harm America, and even worse,” Huang said. He further highlighted China’s significant role in global AI development, with roughly 50% of the world’s AI researchers.
Despite receiving US approval to sell a less powerful H20 chip tailored for the Chinese market, Nvidia faces further challenges. Chinese authorities launched a security investigation into the H20, and local clients were advised to avoid the product, further limiting Nvidia’s foothold. Huang warned that excluding Nvidia from China risks ceding the market to domestic competitors like Huawei Technologies, which recently unveiled an ambitious AI chip roadmap.
(Excerpt) Read more at msn.com ...
China reportedly told its top tech firms, including ByteDance and Alibaba, to stop buying Nvidia chips, even modified ones.
Instead, companies are turning to domestic players like Huawei and Cambricon, which are closing in on Nvidia-level performance.
Memory Maker Micron Technology is following suit, pulling entirely out of China’s data-center market.
Methinks all of these MBA types must know by now any non-domestic venture in China is doomed to fail, and due to their hubris combined with greed, they figure they can get a fat paycheck before it collapses.
Before WII US firms were selling scrap metal to Japan. It was clear it would come back at us at some point. Now, it’s chips.
China has wasted billions on supposed tech startups. They’re giving money to well-connected people who have never done anything like what they’re proposing. They did the same with pork farmers, giving money to people who knew nothing about raising pigs. Mostly, the money has been wasted because China’s economy is hugely inefficient and corrupt.
We need to keep an eye on things, but it isn’t time to panic.
They enticed us to outsource our semiconductor industries decades ago for cheaper labor.
They stole every single bit of intellectual property they could get their hands on.
Now, we are dependent on a Communist country, our enemy, for semiconductors.
And countess other industries. We are to blame, our own government, our own industries.
They set the trap, opened the door, and we willingly walked right in.
Commuist China is not an ally, they are not a friend, they are not a trading partner. There is not, and has never been, "Free Trade with them. They have been waging ruthless, government run, economic warfare for decades, not warfare to make a profit, but warfare to hollow us out, bankrupt us, and make us an economic vassal state.
And they have succeeded.
It may be too late to turn it around, but at least this current administration is paying attention.
I have read two specific books on this that finally made me understand just exactly what Communist China is up to: Stealth War: How China Took Over While America's Elite Slept by Gen. Robert Spalding (Ret.) and Unrestricted Warfare co-written by two Colonels in the People's Liberation Army, Qiao Liang and Wang Xiangsui.
General Spalding's book was eminently readable, though a bit gut wrenching. But knew of what he wrote. (General Spalding was relieved of his post in the NSC because of his strident, unrepentant, and finally, public warnings about allowing Communist China to design and build 5G networks in the USA. His open statement to the press was what got him fired.)
I had far more difficulty reading Unrestricted Warfare, but what impressed me about that was how they weren't even trying to hide their goals in it. I didn't enjoy reading it, as it was not very approachable, but the message was unmistakeable.
They clearly believe they can bring our country down via non-kinetic warfare. Further, I got the unmistakeable impression that they discouraged the approach of building up their military as the Soviet Union did to challenge us, but instead were advocating that they build just enough to make the world believe they were following the path of the Soviet Union in order to make us build ourselves up and bankrupt ourselves, as the Soviet Union did.
Granted, that book was written back in 1999 and things have changed.
I believe that the risk involved in this trade war is fully and absolutely balanced by the fact that the CCP has had the upper hand as long as the West in general, and America in particular, are not wholly cognizant of the power the Communist China wields.
It is my opinion the someone got Trump's ear, and convinced him (rightfully and accurately) that the greatest weapon American wields over Communist China (and the rest of the hostile world) is our consumer market, hundreds of millions of Americans who control the purse strings that allow money to flow into the ChiCom coffers.
The Communists knew this, and understood that like Satan, the best defense against us defending our interests was to make Americans believe the threat did not exist. And that concealment is gone.
They know it. Trump knows it. and now, many Americans understand it too.
Again. Calling them out on what they have deliberately planned and carried out in a most effective manner is not without risk. They are a simmering pot internally. If you really want to know about China, I believe this person who has a channel on YouTube (he goes by the nickname of LINK: Serpentza) and he had lived in Communist China as an English teacher for 15 years. He knows the country pretty intimately.
The CCP has created an internal monster they have to keep going, or that monster is going to come after them. And they know it.
“They have been waging ruthless, government run, economic warfare for decades, not warfare to make a profit, but warfare to hollow us out, bankrupt us, and make us an economic vassal state.”
Except they also make a profit running marijuana farms in Maine and other states. Plus I think they are doing pretty well in the Fentanyl production industry. Not only are both of these very profitable, but they also destroy us from within.
Exactly.
Excellent post. I am not entirely sure I agree with your final statement but I’m no better at predicting the future than anyone else.
Oh boo, hoo, boo hoo, now that China has pirated enough technology from Nvidia’s chips it is using that pirated know how to advance its home grown chip makers, and stupid Jensen Wang wants to blame U.S. tariffs. He has been blind to the CCP from day one, just like most American top corporate heads.
In January - March this year, there were apocalyptic stories galore about “DeepSeek” as the next big thing in AI. The DeepSeek R1 launch caused U.S. tech stocks to plunge, with Nvidia alone losing nearly $600 billion in market value in a single day. Investors feared DeepSeek’s efficiency undermined the “invincibility” of American AI giants, raising questions about overvalued U.S. firms like Nvidia, Microsoft, and Meta.
But Its follow-up R2 in summer 2025 hit snags training on Huawei’s domestic Ascend chips (persistent technical glitches exposed limits of China’s chip alternatives).
ByteDance’s Doubao app overtook it in popularity by October, thanks to better user design, proving virality often trumps raw power. Moonshot AI’s Kimi K2 also emerged as a rival, calling it “another DeepSeek moment.”
So much for all the hype and fear of Chinese dominance!
It's what America from its inception did to Britain. It's human nature to want to make better things.
Yup, and the executives who did that should be shot for what they did to the American worker. But even worse are the Democrat regulators who drove our production overseas. A fine example is what the Clean Water Act did to domestic plating as an industry. They were demanding copper discharge standards cleaner than for drinking water.
And countess other industries. We are to blame, our own government, our own industries.
I think a LOT of this was driven by the Fed, as a way to mask inflation and pay off "investors" for cashing in on the creative product of the American worker thereby dispossessing those families.
China has just developed their own CPU! It is said to be based on Intel’s 386 chip from the early 90s.
This was big news when OpenAI created "thinking models" to improve results and Chinese company DeepSeek put out a thinking model that was trained faster and with smaller datasets and yet had similar quality to Open AI yet was small enough it could run locally on your own PC (for the smaller variants).
Overall I want the USA to win the AI wars, such as they are, but this Chinese approach to the problem is actually very clever and valuable and we need to embrace them in addition to "big iron" solutions.
“The Capitalists will sell us the rope with which we will hang them.”
― Vladimir Ilich Lenin
We don’t, and haven’t lived in that era for a long time. In the global economy of the late 19th and 20th Century, global standards for Intellectual property rights were codified. I view what was done before that (Including America at its inception) as a wholly different category from the 19th-21st Century global economy.
You are absoutely right, it is indeed human nature to want to make better things, no doubt, but with the codified standards in a global economy (which Communist China no doubt says it adheres to, with a straight face) to participate, countries adhere to the rules.
But they don’t. I went to a website by accident the other day, and it was full of DeWalt power tools with the characteristic yellow and black livery.
Then, as I looked closer, they weren’t DeWalt, they had some name like “DoWalt” or something like that. And it was Chinese.
General Spalding (Steath War) said that when he lived in Communist China, that it was the purest form of vicious dog-eat-dog capitalism he had ever seen, except for one thing-you could not cross or impinge on the interests of the CCP. That was severely punishable.
The corollary to that is, if this fake “DoWalt” company is manufacturing and selling, it is doing so with the aid and blessing of the CCP.
And...I do agree as well with your last statement. It is probably no coincidence that we went off the gold standard during the Nixon administration, and things went sideways with inflation in the Seventies.
National security is more important than these companies profits. They seem to forget that.
Well it’s time to go cheaper and better
do you think Jensen cares more about national security than his own wealth?
China will lose if they try to use their home-grown AI stuff. It’s simply far inferior to the NV stuff. This might be a loss for NV, but it’s a win for US interests.
Pursuant to the collapse of Bretton Woods, Nixon promised the mineral estate of the American West as security for more bonds purchased at a cheaper prices, thus (again) masking inflation because a Slave Party Congress was to cowardly to do anything about deficit spending. The ESA, CWA, etc. were the vehicle by which to steer mining development, timber, etc. into the hands of foreign interests and bankers.
What galls and worries me now is that the intellectual capital (actually "skills capital") needed to build and process anything in industrial function is now aging to almost beyond recovery. THAT is the real damage done by exporting industry. CEOs are exceptionally unlikely to value that loss appropriately because they never paid what it was worth in the first place. I say that as a former development and manufacturing engineer who has always worked and designed with his hands.
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