Republican House Speaker Mike Johnson called China the “enemy” of the US on Wednesday after reports that tech companies told them to stop buying nvidiaArtificial intelligence chip.
China’s cyberspace management has ordered companies to suspend purchases of Nvidia’s RTX Pro 6000D.
“They steal our intellectual property,” Johnson told CNBC’s “Scoobox” on Wednesday. “They have nothing to do with either the US trademark law or any other provisions that adhere to fair trade agreements. It’s not the US’s fault for having these tense relationships.”
Johnson’s comments coincided with comments from Nvidia CEO Jensen Huang at a press conference on Wednesday in London.
“We can only serve the market if the country wants us,” he said in response to the company’s ban on tipping. “I’m disappointed with what I’m seeing, but they have a bigger agenda to work out between China and the US.”
Nvidia stocks were slightly lower on Wednesday.
CNBC contacted the Chinese Embassy for comment.
China’s reported moves against Nvidia show confidence in domestic chip manufacturing as the country promotes semiconductor independence by strengthening wafer production.
The country that believes it can make enough chips to meet the burgeoning demand is promoting Huawei’s Ascend 910b as Nvidia’s legal rival.
According to Mizuho, China is still years behind the most advanced semiconductors despite progress.
Access to the Chinese market means billions of dollars for US chipmakers.
JAB is the latest in a drawn-out battle between the world’s largest economy over control and access to high-end AI chips.
Last month, the White House signed a deal with Nvidia with a competitor Advanced Micro Devices Obtain an export license and resume selling certain chips in China.
As part of the transaction, the companies agreed to pay 15% of their sales to the US government.
Earlier this year, the Trump administration told Nvidia it needed a license to sell China-designed H20 processors domestically.
The company previously created chips to circumvent previous restrictions on AI chip exports enacted under the Biden administration due to national security concerns.
Huang previously denounced US tipping restrictions, saying the curb is nearly half the Chinese company’s market share. He also warned that being separated from China’s AI market would be a “great loss” for the company.
In its recent quarterly profit report, NVIDIA did not report H20 chip sales to China.
CNBC’s Kristina Partsinevelos contributed to this report.
