Daniel Newman Says Nvidia Still Key To China's AI Ambitions: Beijing Has 'Better Chance Of Keeping Up' In AI Race Using US Chips Despite Huawei Push

On Wednesday, Futurum CEO Daniel Newman said that China's best shot at remaining competitive in the AI space is by using Nvidia Corp (NASDAQ:NVDA) chips. This is despite the country pushing for domestic alternatives like Huawei Technologies.

China Still Needs Nvidia To Compete: Newman

Taking to X, Newman said that he does not buy the narrative that China will turn away from Nvidia's H200 chips.

"We do not believe that the narrative that China won't buy $NVDA H200 to be accurate," he wrote, adding that "There is some political jockeying, but in the end China has a better chance of keeping up in the AI race with NVIDIA even if Huawei eventually does build more competitor hardware."

Along with the post, Newman shared a clip from his appearance on Bloomberg in which he said that they always believed that this would be the end result.

He also noted that Nvidia's hardware and software ecosystem remains the preferred platform for Chinese developers.

We do not believe that the narrative that China won't buy $NVDA H200 to be accurate. There is some political jockeying but in the end China has a better chance of keeping up in the AI race with NVIDIA even if Huawei eventually does build more competitor hardware. pic.twitter.com/G80anRglp5

— Daniel Newman (@danielnewmanUV) December 10, 2025

See Also: Nvidia’s Smart Chips Could Soon Tell On Their Smugglers

Political Tensions Surround US Approval

Newman's comments came after, on Monday, President Donald Trump announced that the U.S. will allow Nvidia to export H200 chips to approved Chinese customers.

He also said that they will continue to block shipments of the more advanced Blackwell and future Rubin processors.

The move triggered immediate backlash. Lawmakers, including Sen. Elizabeth Warren (D-Mass.), Sen. Chuck Schumer (D-N.Y.) and former Republican presidential contender Nikki Haley, accused Trump of jeopardizing national security.

Beijing Signals Its Own Limits

Meanwhile, Beijing is also reportedly considering restrictions on domestic access to Nvidia's H200 chips. As per the reports, Chinese regulators are weighing an approval system requiring buyers to justify why domestic chips cannot meet their needs.

Benzinga's Edge Stock Rankings place it in the 97th percentile for Growth and the 92nd percentile for Quality, underscoring the company's strong competitive performance.

Read Next:

• Nvidia CEO Jensen Huang Warns China Could Beat America In AI: ‘They Can Build A Hospital In A Weekend’ While US Takes Years

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.