Nvidia's Jensen Huang: Deep dependence of US and China on technology, Taiwan remains the core hub of chips

NVIDIA CEO Jensen Huang recently stated in an interview that one of the biggest misunderstandings in the world is the deep interdependence between the United States and China, with Taiwan still being a key hub in this relationship. He explained, in terms of the timeline, why it is important to “not push either side into a corner” and emphasized that making American technology the global standard is more important than simply blocking it.

The world is unaware of a major fact: the US and China are actually highly dependent on each other

When asked if there is something important that the world still doesn’t know but should, Jensen Huang straightforwardly said:

“The world has underestimated the level of dependence between the US and China.”

He stated that the idea of “decoupling” between the US and China is not very accurate. A thorough study of supply chains, technology, human resources, and markets reveals that their interdependence is very deep and only growing deeper. This will be one of the most important aspects of international relations for the next hundred years.

Huang emphasized that managing this relationship and avoiding conflict is the most important task globally. Negotiation, communication, compromise, and ongoing dialogue are necessary means. He also mentioned that the US government, from defense and finance to diplomatic teams, is making great efforts to maintain dialogue with China. He considers this a “very wise” approach.

AI Talent Mostly Comes from China, Competition Is Fine But Avoid Emotional Confrontation

Regarding the AI industry itself, Huang pointed out that the outside world also underestimates the reliance of the AI industry on Chinese talent.

He said that about half of the world’s AI researchers are from China. Chinese companies want China to win, and the US wants the US to win—that’s perfectly normal. The focus is not on the competition itself but on whether this competition will turn into emotional name-calling, hostility, refusal to talk, and only confrontation.

He stressed that cooperation is possible within competition, but if emotions dominate too much, it will only make the relationship harder to manage.

The Policy Tug-of-War Over H20 Chips: From Ban to Market Disappearance

Looking back at the early Trump administration, Huang noted that NVIDIA’s H20 chips were once banned from being sold to China, but later the company successfully persuaded the government to lift the restrictions. However, subsequently, US Commerce Secretary Gina Raimondo expressed hope to “make China dependent on US chips.” As a result, China later stated they no longer wanted the H20, and Huang publicly said that NVIDIA now has almost no revenue from China.

Huang responded that many people have a too simplistic understanding of AI. AI is not just models but the entire technology stack. Each layer—from energy, chips, infrastructure, cloud, models, to applications—must be won for the US to succeed in this industrial revolution.

He believes that the most important thing is to ensure that AI worldwide runs on US technology stacks, becoming the global standard.

Selling Chips to China Does Not Equal Helping China Build Weapons

There is a common misconception that if the US sells chips to China, the Chinese military will use them to build warships and fighter jets. Huang directly rebutted this.

He pointed out that China already has its own chip and technology industries, and their strength is not weak. Those who believe China “lacks technology” are actually burying their heads in the sand. He said that allowing US companies to compete and earn profits in China is good for both the US economy and national defense.

The strongest military comes from the wealthiest countries, and enabling US companies to profit globally is itself part of national security.

US-China Tech Interdependence Will Not Decouple, Taiwan Remains a Key Player

The host then asked whether the US producing the most advanced chips in Arizona and China developing its own chip industry counts as technological decoupling, and whether this makes Taiwan more vulnerable.

Huang responded that the focus is not on decoupling but on “resilience.” Producing in multiple locations is to cope with risks like earthquakes, weather, and power outages, preventing the entire supply chain from collapsing at once. He also emphasized that Taiwan’s efficiency in chip and electronics manufacturing is rare worldwide, and replicating this ecosystem would take decades. The US will continue to heavily rely on Taiwan for a long time.

Selling Chips to China Might Actually Reduce the Likelihood of War

The host directly asked whether, given China’s demand for the military to prepare for an attack on Taiwan by 2027, selling chips to China might make war more likely. Huang answered that he believes it is “less likely.” The reason is simple: never push any opponent into a corner. Extreme policies tend to provoke unpredictable backlash, making things more dangerous.

He advocates for a gentle, nuanced, and balanced strategy—ensuring US technological leadership while allowing US companies to participate in the global market—to maintain relationships and reduce tensions.

Parallel Competition and Cooperation, Avoiding Emotional Confrontation as a Long-term Strategy

From Huang’s perspective, his stance is not one of full openness nor complete blockade but of cooperation within competition and competition within cooperation. He believes that US and China will inevitably compete; but competition does not necessarily lead to conflict. For him, making US technology the global standard and enabling US companies to compete worldwide while avoiding pushing China into a corner is a narrow and difficult path, but it is more conducive to global stability than emotional confrontation.

This article, “NVIDIA Huang: US-China Tech Deep Interdependence, Taiwan Still a Chip Core Hub,” first appeared on Chain News ABMedia.