Chinese Foreign Ministry spokesperson Guo Jiakun

A spokesperson of China's Foreign Ministry on Wednesday urged the US to take concrete actions to keep global [chip] industrial and supply chains stable. 

Spokesperson Guo Jiakun made the remarks when asked whether China welcomes sales of American AI chips as Nvidia's CEO Jensen Huang has indicated the desire for US artificial intelligence chips to be sold in China.
  
China has made clear on multiple occasions its principled position on the US chip export to China. We hope the US can take concrete actions to keep global industrial and supply chains stable, Guo said.  

According to Nikkei Asia, Huang on Tuesday told reporters and analysts that if Nvidia continues being shut out of the Chinese market, it will hurt America more than it hurts China, after he delivered his first-ever speech at the company's GTC DC developer conference in Washington.

The US government has been tightening exports of advanced AI chips to China from Nvidia and others, along with chipmaking tools, in recent years, and the chip giant's CEO said that he hoped the US administration could see the harm such policies will do to the US, Nikkei Asia reported on Wednesday.

"We want to compete against China, no doubt about that. We want America to win this AI race, no doubt about that ... But we also need to be in China to win their developers. A policy that causes America to lose half of the world's AI developers is not beneficial in the long term," said Huang, according to the report.

Huang said at a question-and-answer session with reporters and analysts Tuesday afternoon that the US administration is working on new regulations to allow the government to take a 15 percent cut from its China sales, and claimed China has not decided whether it will allow Nvidia chips to go back into the country. "Our job is just to wait until they want us to be there," Huang claimed, according to the report. 

He added that shares of Chinese domestic chipmakers have jumped significantly with Nvidia leaving the country, which should be a sign for Washington to move fast to bring it back into the market. According to Nikkei Asia, Huang said that "This is a country with a lot of technological might. This is a country with a lot of manufacturing might. They're not waiting around for us." 

Ma Jihua, a veteran tech analyst, told the Global Times on Wednesday that despite US chip restrictions on China, the country has been steadily advancing its industrial capabilities, accelerating the development of independent and self-reliant products, and strengthening its own supply chain. 

"At present, China has become a major consumer and producer in the global chip market, and the Chinese market remains critical for the entire chip industry, including American companies," Ma said.

On October 6, Huang said at a Citadel Securities event that the company's position in China had dropped from 95 percent of the advanced chip market to zero, as the US semiconductor giant is not allowed to sell its advanced products to Chinese mainland companies under US export restrictions, the South China Morning Post reported.  

Ma said that Huang's remarks showed that the CEO has recognized the indispensability of the Chinese market. However, due to the pressure imposed by the US government, he has to make concessions to seek a balance, the expert said.

"The US should stop politicizing and weaponizing economic, trade, and technology issues, as such actions hinder the development of the global semiconductor industry and will ultimately backfire, harming others while damaging the US itself," Ma warned.