Nvidia CEO Jensen Huang Says China Is Only “Nanoseconds Behind” in Chips, Calls for Eased Export Rules

For years, conventional wisdom has suggested that China’s semiconductor industry trails the United States by several years, if not a full decade. Nvidia chief executive Jensen Huang disagrees. Speaking on a recent podcast, he described China as just “nanoseconds behind” the US, while urging Washington to reconsider restrictions that prevent American firms from competing in the Chinese market.

On the BG2 podcast, Huang emphasized that China represents a formidable competitor—“innovative, hungry, fast-moving, underregulated”—driven by its intense 9-9-6 work culture: 9 a.m. to 9 p.m., six days a week. He contrasted this with US companies that often operate under more flexible, remote-work policies, echoing concerns raised by former Google CEO Eric Schmidt about America’s ability to keep pace.

Rather than being years behind in chip design and manufacturing, Huang insisted China is nearly on par. “They are nanoseconds behind us, and so we’ve got to go compete,” he said. The Nvidia boss added that China not only welcomes foreign investment but also aspires to expand its own technology presence globally.

Huang was critical of US export rules that limit sales of advanced chips to China. He argued that preventing “America’s best industry” from competing internationally threatens its long-term survival, economic strength, and geopolitical influence. His position is not without controversy, however, as critics suggest Huang’s priority is boosting Nvidia’s sales, not addressing national security risks.

Earlier this year, Washington reached a deal allowing Nvidia to resume sales of its H20 GPUs in China, though the government takes a 15% share of revenue. Despite this, Chinese state media has dismissed the chips as unsafe, outdated, and environmentally harmful, even accusing them of containing spyware and hidden backdoors. Beijing has reportedly pushed domestic tech firms toward homegrown alternatives such as Huawei’s processors.

Still, Nvidia is said to be developing a next-generation successor to the H20, with improved performance aimed at winning back Chinese buyers. Whether Washington relaxes its restrictions or tightens them further will determine how much access US chipmakers have to one of the world’s largest markets.