Nvidia once owned 95% of China’s advanced AI chip market. That number is now zero.
US export controls, which began tightening in 2022 and have since escalated into what amounts to a full ban on advanced AI chip shipments, have forced Nvidia out of what was one of its most lucrative markets. The beneficiary is Huawei, which has stepped into the vacuum as China’s national champion for AI accelerators, backed by state support and growing domestic production capacity.
How the ban unfolded
The restrictions didn’t arrive all at once. They came in waves, each one more aggressive than the last.
The initial round of export controls in 2022 targeted Nvidia’s most powerful chips, barring their sale to Chinese customers. Nvidia responded by designing downgraded versions specifically tailored to comply with the new rules. That workaround didn’t last long.
