Nvidia CEO Calls US-China Decoupling "Naive," Urges Pragmatic Tech Relations Amid Chip Sales Hopes
Nvidia CEO Jensen Huang has dismissed the idea of decoupling from China as "naive" and "not based on any common sense," emphasizing the impracticality of severing deep economic and technological ties between the U.S. and China. Speaking during an episode of the "No Priors" podcast released on Thursday, Huang argued that while China is a strategic adversary in certain areas, it remains a vital partner in many others. Huang praised former President Donald Trump’s approach to U.S.-China relations, describing it as grounded in realism and common sense. He noted that Trump’s administration recognized the dual nature of the relationship—both competitive and cooperative—and rejected the notion of complete economic separation. "The idea of decoupling for whatever reason, philosophical reasons or national security reasons, it's not based on any common sense," Huang said. The comments come as Nvidia prepares to re-enter the Chinese market, where it once estimated it could generate up to $50 billion in annual revenue. According to Bloomberg, China is expected to approve sales of Nvidia’s H200 chips "as soon as this quarter." This follows Trump’s December decision to lift a Biden-era ban on the sale of older H200 chips to China, provided the U.S. government receives a 25% cut on future sales. Huang reiterated that restricting chip exports won’t slow China’s AI progress. "We're not expecting any press releases, or any large declarations," he said during a news conference at CES in Las Vegas. "It's just going to be purchase orders." He stressed that the market will respond through actual transactions, not formal announcements. Huang also highlighted the importance of maintaining strategic independence while acknowledging interdependence. He supported efforts like those under Trump’s administration—using tariffs and incentives to bring manufacturing back to the U.S.—but cautioned against over-reliance on any single nation. "When you depend too much on someone, the relationship becomes too emotional," he said. "It's good to have some independence, as much as either side would like, but to recognize that there's a lot of coupling, a lot of dependence between the two countries." He called for a nuanced, long-term strategy to manage the relationship constructively. "Everybody depends on a productive, constructive relationship between the two most important nations," Huang said. "And that’s the single most important relationship for the next century. We have to find that answer—together."
