Nvidia CEO Jensen Huang said on Wednesday that China is “not behind” AI, and that Huawei is “one of the most powerful technology companies in the world.”

Huang told reporters at a technology conference in Washington, DC that China may temporarily "lagged behind" the United States, but this is a narrow gap.

"We're very close," he said. "Remember, it's a long-term unlimited game."

NVIDIA has become the key to the world economy over the past few years as it powers chips for most recent advanced AI applications. The company faces an increasing number of U.S. hurdles, including tariffs and pending Biden-era regulations, which will limit the shipment of its most advanced AI chips to many countries around the world.

The Trump administration this month restricted shipments of NVIDIA's H20 chips to China without permission. The technology is related to hopper chips used in other parts of the world, and the technology is designed to comply with previous U.S. export restrictions. NVIDIA said the restriction would require a $5.5 billion strike.

Huawei, which is on the U.S. trade blacklist, is reportedly launching AI chips for Chinese customers.

“They are incredible in terms of computing and networking technology, all of which promote the main capabilities of AI,” Huang said. “They have made tremendous progress over the past few years.”

NVIDIA's rationale is that U.S. policy should focus on making its companies competitive and limiting chip sales to China and other countries threaten U.S. technology leadership.

Huang once again called on the U.S. government to focus on AI policies to accelerate technology development.

"This is an industry we have to compete for," Huang said.

Trump called Huang "my friend Jensen" Wednesday, for the company recently announced that it plans to build $500 billion in U.S. AI infrastructure over the next five years.

Huang said he believes Nvidia will be able to say earlier this month in the U.S. that the company will assemble its manufacturing partner Foctonn near Houston.

Huang said: “With willpower and the resources of our country, I’m sure we can make it on the shore.”

Nvidia shares have fallen more than 20% this year, gliding with the wider market, nearly triple their value last year. The stock fell nearly 3% on Wednesday.