April 30, 2025 NVIDIA CEO Jensen Huang says China is a formidable competitor in artificial intelligence, pushing back on claims that U.S. restrictions have significantly slowed the country’s progress. Speaking at a major tech conference in Shanghai, Huang acknowledged China’s continued innovation in AI, despite limited access to top-tier chips.

China is not falling behind in artificial intelligence (AI), according to NVIDIA CEO Jensen Huang. Speaking at the World Artificial Intelligence Conference (WAIC) in Shanghai on Tuesday, Huang said Chinese researchers and companies continue to make strong progress, despite export restrictions from the U.S.

“China is not behind,” Huang said. He further noted that restrictions on sales to China may have an opposite effect and make them more competitive. There are strong rumours that Huawei is developing its own AI chip. And Huang noted, Huawei is “one of the most formidable technology companies in the world.”

NVIDIA has been barred by the U.S. government from selling its most advanced chips to China, including the H100 and newer H200 graphics processing units (GPUs), due to concerns they could be used in military or surveillance applications. In response, NVIDIA developed less powerful alternatives like the H20, but even these have faced shipment delays and uncertain demand.

Still, Huang argued that software, not just hardware, drives AI success. “Accelerated computing and AI is not a chip, it’s a software stack,” he said. “It’s an ecosystem that comes together. You can’t magic one of these things. You have to engineer it over time.”

China has announced its ambition to become the world leader in AI by 2030. Despite sanctions, it remains a major player in areas such as large language models, facial recognition, and AI-driven manufacturing.

Huang’s remarks add weight to growing concerns in the West that export controls may slow, but not stop, China’s AI growth. His comments also serve as a reminder that AI competitiveness hinges not just on hardware access, but on talent, data, and integration.

Enterprises with interests in global AI markets should keep an eye on China’s evolving ecosystem. For Western policymakers, the remarks may spark renewed debate about how best to manage competition and collaboration in AI innovation.