Nvidia CEO Jensen Huang has sharply criticized the concept of US-China decoupling, calling it “naive” and “not based on any common sense” during a recent appearance on the “No Priors” podcast. The comments come as Nvidia eagerly awaits approval to resume sales of its advanced AI chips in the lucrative Chinese market, which Huang previously estimated could be worth $50 billion annually.
Huang expressed optimism about the Trump administration’s approach to managing the complex US-China relationship, praising what he described as a “really grounded and common-sense attitude” that recognizes China as both an adversary and a partner. Bloomberg reported that China plans to approve sales of Nvidia’s H200 chips “as soon as this quarter,” marking a significant development for the AI chip giant that has been locked out of the Chinese market due to export restrictions.
In December 2024, President Trump lifted a Biden-era policy that effectively banned Nvidia from selling its H200 chips in China, though the new arrangement requires the US government to receive a 25% cut on future sales. The H200 represents Nvidia’s older generation of AI chips, but remains highly valuable for AI development and deployment.
During a news conference at CES in Las Vegas, Huang indicated that he wasn’t expecting formal announcements from Beijing regarding chip sales approval. “We’re not expecting any press releases, or any large declarations,” Huang said. “It’s just going to be purchase orders.” This suggests a quiet normalization of trade relations rather than a dramatic policy shift.
Huang has consistently maintained that US export restrictions will not effectively slow China’s AI advancement, arguing instead for a more nuanced approach to the relationship. He advocated for both nations to invest in their own independence while recognizing the deep interdependence between the world’s two largest economies. “When you depend too much on someone, the relationship becomes too emotional,” Huang explained, suggesting that some independence is healthy but complete decoupling is unrealistic.
The Nvidia CEO emphasized the global stakes of the US-China relationship, calling it “the single most important relationship for the next century.” He stressed that the entire world depends on a productive, constructive relationship between these two nations, particularly as AI technology becomes increasingly central to economic and technological development.
Key Quotes
The idea of decoupling for whatever reason, philosophical reasons or national security reasons, it’s not based on any common sense.
Jensen Huang, Nvidia’s CEO, made this statement on the “No Priors” podcast, directly challenging the premise of US-China technological separation that has driven much recent policy. This matters because Huang leads the world’s most valuable AI chip company and has unique insight into the practical realities of global AI development.
I am optimistic that our relationship with China will improve, that President Trump and the administration has a really, really grounded and common-sense attitude and philosophy around how to think about China, that they’re an adversary, but they’re also a partner in many ways.
Huang’s praise for the Trump administration’s approach signals his belief that the new policy framework—which allows chip sales with revenue sharing—represents a more pragmatic middle ground than the previous administration’s stricter restrictions. This perspective from a major tech CEO could influence how other companies approach the Chinese market.
We’re not expecting any press releases, or any large declarations. It’s just going to be purchase orders.
Speaking at CES in Las Vegas, Huang indicated that the normalization of chip sales to China would happen quietly through commercial transactions rather than formal policy announcements. This suggests both governments prefer to downplay the policy shift while allowing business to resume.
Everybody depends on a productive, constructive relationship of the two most important nations and the single most important relationship for the next century.
Huang framed the US-China relationship in global terms, emphasizing that the entire world has a stake in these two powers finding a workable arrangement. This matters because AI development increasingly depends on international cooperation and market access, making complete decoupling potentially harmful to global innovation.
Our Take
Huang’s comments reveal the tension between national security concerns and commercial realities in the AI chip industry. While his position is clearly influenced by Nvidia’s massive financial interest in the Chinese market, his argument about the impracticality of decoupling reflects genuine challenges in the global technology ecosystem. The 25% revenue-sharing model represents an innovative compromise—allowing American companies to benefit from Chinese AI development while giving the US government both oversight and financial participation. However, this approach raises questions about whether it adequately addresses technology transfer concerns or simply delays China’s development of domestic alternatives. The real test will be whether this arrangement proves sustainable as AI capabilities advance and geopolitical tensions potentially intensify. Huang’s optimism may be premature if either nation decides that strategic autonomy outweighs the economic benefits of cooperation.
Why This Matters
This development carries enormous implications for the global AI industry and the future of technological competition between the United States and China. Nvidia’s potential return to the Chinese market represents a significant shift in AI chip export policy and could reshape the competitive landscape for AI development worldwide.
The $50 billion annual market opportunity underscores China’s massive investment in AI infrastructure and its determination to remain competitive in the AI race despite US restrictions. Huang’s comments reflect growing recognition among tech leaders that complete technological decoupling is impractical and potentially counterproductive, as global supply chains and markets remain deeply interconnected.
For businesses developing AI applications, the resumption of H200 chip sales to China could accelerate AI deployment globally while raising questions about technology transfer and national security. The 25% revenue-sharing arrangement with the US government also sets a precedent for how future tech exports might be managed, potentially creating a new model for balancing commercial interests with security concerns in the AI era.
Related Stories
- Nvidia CEO Jensen Huang Reveals Public Speaking Struggles Despite AI Success
- Nvidia faces US probe over potential export rules violations to China
- Meta and Nvidia Billionaires’ Wealth Soars $152B in AI Boom
- China’s EV Industry Embraces AI: ‘Electric Intelligent Vehicles’ Emerge
Source: https://www.businessinsider.com/nvidia-jensen-huang-us-china-decoupling-h200s-2026-1