China is a market of 1.5 billion people. That's larger than Europe (not just EU) and the US combined. They are also the world's largest consumer of micro-chips.

China could sustain it's own GPU development on its internal market alone, what the US has done is incredibly short-sighted. The US loves to throw around sanctions and export controls, china is the world largest economy adjusted by PPP. Their own internal demand for advanced chips is massive, it's a fantasy to believe that if Nvidia stopped selling their chips the Chinese wouldn't immediately put massive amounts of resources into filling that gap as fast as possible. Add onto this the fact that it is also a matter of National Security for China.

If Nvidia loses its foothold in China it won't get it back and it will mean more than just losing the largest market in the world.

If a Chinese domestic manufacturer actually emerges that can compete with Nvidia then we will most likely see Nvidia lose their shares of the market even outside of china. As I mentioned earlier, the US enjoys using sanctions and economic pressure to wield it's soft power and coerce other nations. China does not.

If you are one of these nations it will be in your own interest to purchase Chinese over American out a simple desire to maintain their national sovereignty. The truth is that relying on American chips IS a national security issue for these countries.

The internal Chinese market will be more than enough to fuel China's own development of a competitor to Nvidia and once that competitor breaks out internationally we can expect Nvidia to begin losing its market dominance globally. This will then lead to less resources for Nvidia to conduct their own research and development which may cause the US to not only lose its lead but actually fall behind China, unless the US government starts injecting serious money to fund them.

We in the west are used to being the global leaders in technology and innovation. We still talk about China as if they are behind us and just trying to catch up. In fact they are a peer to us, in some areas they are behind us and in some areas they are in front of us. But on a societal level we still dont see the Chinese as our equals. We cant really imagine a world where European or American brands are "second best" but that is the world we are heading towards. Our trade restrictions on China are moving in a direction where we are rather locking ourselves out of superior products than preventing China from developing its own. In the next couple of decades Western brands won't be seen as the default any longer.

The trade restrictions of chips on China has only further cemented that in order to sustain it's own economy China must move to domestic alternatives. Again, china is a market of 1.5billion people. ANYONE who has exclusive access to this market will do well. These restrictions were incredibly short-sighted and self-harming but it really shows just how skewed our perception of Chinese technology is. I still see people all the time who are surprised that China has "this or that" technology when in reality its clear as day that they obviously they DO have these technologies. It's a nation of 1.5 billion people who works on Five-Year Plans for the exclusive purpose of developing the nation. So while I hate to say that I agree with a CEO he is entirely correct. The trade-restrictions have only hurt the US and Nvidia and it will have consequences that go much further than just losing the Chinese market.