Nvidia(US:NVDA) Xin Lang Cai Jing·2025-10-19 08:25Core Viewpoint - Nvidia has officially exited the Chinese market due to U.S. export controls, reducing its market share to 0% after previously being at 50% [1][3]. Group 1: Impact of U.S. Policies - The U.S. government has intensified direct control over domestic companies, which has led to Nvidia's complete withdrawal from China, indicating a significant failure in U.S. strategy [1][3]. - The restrictions on Nvidia's H20 chip exports to China have resulted in a $4 billion drop in sales for the second quarter, as domestic GPU manufacturers quickly captured the market [5][3]. - The U.S. government's approach to industry policy is seen as ineffective, as it has not engaged in such practices for decades, leading to limited acceptance among companies [7]. Group 2: Consequences for Nvidia and the Industry - Nvidia's founder, Jensen Huang, has expressed concerns that U.S. policies may ultimately harm American competitiveness in AI, as the company struggles to maintain its market position amid rising Chinese capabilities [3][10]. - The restrictions have inadvertently strengthened China's domestic chip industry, as the country has successfully developed its own chips in response to U.S. actions [8][12]. - The U.S. strategy of using trade and tariff wars to pressure China has backfired, pushing China towards greater self-sufficiency and independence in technology [12]. Group 3: Future Outlook - The potential for China to surpass the U.S. in AI development is significant, given that approximately 50% of global AI researchers are based in China, along with strong educational institutions and enthusiasm for AI [10]. - The ongoing tensions and trade policies may lead to further isolation of U.S. companies from the Chinese market, which could have long-term implications for the U.S. economy [12].