AI Photo: VCG

US chip giant Nvidia's CEO Jensen Huang reiterated the importance of China's artificial intelligence (AI) market on Tuesday US time, saying that China's AI market will likely reach about $50 billion in the next two to three years, and that missing out on it would be a "tremendous loss," CNBC reported.

According to the report, Huang said that being able to sell into China would bring back revenue and taxes, and "create lots of jobs here in the US."

The Nvidia CEO's latest remarks came after he visited China in mid-April, his second trip to the country in three months, during which he reaffirmed Nvidia's commitment to deepening cooperation with the Chinese market. 

Also, in late April, Huang said at a tech conference in Washington that China is "not behind" the US in AI, and called the race in AI development a "long-term, infinite race," according to the CNBC report. 

Huang's remarks also came against the backdrop of restrictions by the US government on shipments of Nvidia's H20 chips to China without a license. 

According to Reuters, on April 15, the US Commerce Department said it was issuing new export licensing requirements for Nvidia's H20, AMD's MI308 AI chips, as well as their equivalents. 

Nvidia said that it would take a $5.5 billion quarterly charge due to the restrictions, the strongest sign so far that the company's historic growth could be slowed because of the US-China trade tensions, according to CNBC. 

Huang's repeated remarks highlighted the great importance of the Chinese market for the US chip giant's success, according to Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences.

"The AI field is highly competitive with a long-term development trend. As China is an important market participant, its demand and feedback are crucial to global AI technology iteration and product optimization," Wang told the Global Times on Wednesday.

Wang further pointed out that grasping the Chinese market means obtaining a favorable position in the global AI industry competition and laying a foundation for the long-term development of the enterprise.

Nvidia was among a number of US enterprises that have emphasized the importance of the Chinese market. Tesla China on Tuesday posted a video on its official social media account boasting that more than 95 percent of the parts used in Model 3 and new Model Y electric vehicles produced by its Shanghai Gigafactory came from local suppliers.

In the video, Tesla also said that it is committed to developing products for the global market, while building up localized supply chains. Notably, it praised China's capability in intelligent manufacturing.

According to the latest earnings reports released by multiple US businesses, many US companies are seeing strong sales performances and are continuously expanding in the Chinese market.

For instance, the number of Starbucks stores in China reached 7,758 at the end of the quarter ended on March 30. With such expansion comes strong revenue growth. During the quarter, Starbucks reported that its revenue in the Chinese market reached $739.7 million, up 5 percent year-on-year, according to a press release the company sent to the Global Times.

"China has an important position in the global industrial chain and is a key layout point for R&D, production and sales of US enterprises. Maintaining close ties with China will help reduce costs, improve efficiency and realize sustainable development," Wang said. 

Moreover, the country's economy has demonstrated strong resilience and vitality, and the government is promoting economic restructuring and innovation-driven growth, creating a favorable environment and offering abundant opportunities for foreign enterprises, Wang noted.

Global Times