Nvidia CEO Jensen Huang said in a statement that US export controls on artificial intelligence chips to China were a failure.
He added that the basic assumptions that underpinned the previous AI proliferation regulations were found to be fundamentally incorrect.
US restrictions on the sale of advanced AI chips to China have forced companies in China to source semiconductors from domestic manufacturers such as Huawei.
The move has also prompted China to invest aggressively to build a supply chain that is not dependent on foreign manufacturers.
Huang's statement came after China urged the US on Monday to immediately correct its mistakes and stop discriminatory actions.
The call was in reference to the latest US guidance warning companies not to use advanced computer chips from China, including Huawei's Ascend AI chips.
China's Ministry of Commerce said in a statement that the US action had seriously undermined the consensus reached in high-level bilateral trade talks in Geneva.
China also warned that firm measures would be taken if the US continued to undermine its interests.
Meanwhile, Jensen Huang also reported that Nvidia's market share in China has declined to 50%, compared to 95% at the beginning of former US President Joe Biden's administration.
