In a stark warning to Washington policymakers, Nvidia CEO Jensen Huang revealed that U.S. technology export bans may be triggering unintended consequences, declaring that China already has “all the chips they need” while state-backed rival Huawei is actively “flourishing in our absence.”

“Critics would say that selling advanced chips to China helps China close the gap and perhaps beat the U.S. in AI,” FOX Business host Maria Bartiromo told Huang, “and yet the other angle is the fact that if we block all sales, then China does it anyway, simply accelerating the growth coming out of companies like Huawei.”

“You’ve summarized it really well… The president would like us to win in every aspect,” Huang responded. “The United States has to be absolutely certain and determined to lead the world in every aspect, every layer of that five-layer cake, from energy, of course, from chips.”

“China obviously has all the chips they need. That’s the reason why they don’t need ours. And Huawei has done a very good job there, obviously, one of the largest companies in the world. They had a record year. They’re flourishing in our absence. And they’re now exporting their technology out to the rest of the world, competing with American companies around the world,” he continued.

TRUMP’S TAIWAN ‘NEGOTIATING CHIP’ REMARK SPARKS ALARM OVER HOW FAR HE’D SHIFT U.S.-CHINA POLICY

“And so I think that their ability to secure technology for their national security reasons, I think they have more than ample… for their own needs.”

Nvidia founder and CEO, Jensen Huang, speaks during the 29th annual Milken Institute Global Conference on May 4, 2026.  (Getty Images)

The tech pioneer’s admission exposes a critical national security dilemma: instead of crippling Beijing’s capabilities, aggressive decoupling has forced the communist regime into tech self-sufficiency, turning domestic competitors into a global threat to American industry.

Huang’s comments come on the heels of his recent trip with the president to Beijing, and the U.S. government officially approving licenses for Nvidia’s advanced H200 chips for select Chinese clients.

“[President Trump’s] been very clear that he would like American companies to win around the world. Winning around the world allows us to, one, export, generate revenues for the country, bring back tax dollars for the country, create jobs in America,” Huang said. “It allows us also to diffuse and spread the American technology stack around the world, so that the rest of the world can be built on top of American technology and standards.”

The CEO also highlighted Nvidia’s critical role in American defense infrastructure, specifically confirming that U.S. military intelligence and radar run on its systems.

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“We do a lot of work in imaging, and most of the world’s radar systems and imaging systems has Nvidia chips in it. And, and we’re just incredibly honored,” Huang said. “The Department of War has access to Nvidia’s technology, and our technology is completely open-source so that it could be modified and enhanced for the applications of our military.”

“We’re a very large technology company, and we’re [an] American technology company. We want America’s technology industry to be a national treasure of the United States,” he added. “And manufacturing is a core part of our national security. And we play a very central role in doing that.”

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The traditional gear stick, that small, mechanical talisman of British motoring, is being quietly stripped out of new car ranges, and according to fresh forecasts it will be all but extinct by the end of the decade. The diesel engine, long the workhorse of the company car park, is heading for the same exit door.

Analysts at Vehicle Data Global (VDG) say the manual gearbox will disappear from mainstream UK showrooms inside the next three years, well ahead of the 2030 ban on the sale of new petrol and diesel vehicles. Their argument is not sentimental; it is, as the report puts it bluntly, “hard economics”. Electric cars almost universally use single-speed automatic transmissions, and as the EV share climbs, manufacturers are increasingly reluctant to carry the research, development, certification and tooling overheads needed to keep manual variants on the price list for a shrinking pool of buyers.

For the UK’s small and medium-sized businesses, many of which still run mixed fleets of combustion and electrified vehicles, the implications are more than nostalgic. The transmission and fuel choices on offer over the next 36 months will reshape how SMEs specify company cars, train drivers, calculate residual values and plan capital expenditure on vans and pool vehicles.

The numbers behind the obituary

A market-wide review earlier this year found that just 23 per cent of new cars on UK forecourts now have a gear stick, down from roughly two-thirds a decade ago. Where buyers still have a genuine choice between manual and automatic on a petrol or diesel model, only 34 per cent opted for the manual in 2025, a sharp fall from 55 per cent as recently as 2019.

Diesel’s slide has been even more dramatic. Fewer than one in 20 new cars registered in 2026 (4.8 per cent) is a diesel, down from one in two just over a decade ago, according to the latest SMMT registration data. The reputational fallout from the 2015 emissions scandal, tightening clean-air zones and the rise of plug-in hybrids and pure EVs have all combined to push diesel out of the mainstream — a shift Business Matters has tracked in detail in its coverage of how British drivers are sending a “clear signal” in support of electric cars as petrol and diesel sales nosedive.

Ben Hermer, operations director at VDG, summed up the manufacturers’ calculus. “The moment is fast approaching when the economics of maintaining a manual transmission option don’t add up, given the R&D, certification and other overheads involved in developing and refining gearboxes, even if there remains some demand in the market,” he said. “Based on current trend data, between 5 and 10 per cent of cars will theoretically still be manual by 2030. But manufacturers will be looking hard at whether maintaining manual gearbox programmes for a shrinking share of the market makes economic sense.”

Analysis by CarGurus shows the squeeze in real time: just 67 of the 292 new models sold by the UK’s top 30 manufacturers are currently offered with a manual option, down from 197 models in 2016.

What it means for SME fleets and company car schemes

For finance directors and operations managers running small fleets, three practical consequences stand out.

First, residual values for manual diesels are likely to soften faster than the wider market as supply of replacement parts thins and used-buyer appetite narrows. Owner-managers approaching a vehicle refresh in 2027 or 2028 should not assume that today’s resale benchmarks will hold.

Second, driver training and recruitment policies will need a refresh. Auto-only licence holders cannot legally drive a manual car, and as Business Matters has previously reported in its business owner’s guide to volatile fleet costs in 2026, grey-fleet and pool-car policies are already a hidden compliance risk for many SMEs. With automatic-only learners now the fastest-growing segment of new drivers, employers will need to widen their definition of an “eligible driver”, or accept a shrinking talent pool.

Third, capital allowances, benefit-in-kind treatment and total-cost-of-ownership models will tilt sharply in favour of electrified vehicles. The 2030 ban is no longer a distant policy threat; it is a 36-month operational deadline that intersects directly with vehicle replacement cycles. SMEs that delay their transition planning risk being forced into a depleted second-hand market for manuals and diesels just as supply dries up.

Learners are already voting with their feet

The driving school sector is a leading indicator. Figures from the Driver and Vehicle Standards Agency, set out in the DVSA Annual Report and Accounts 2024-25, show that of the 1,839,753 practical driving tests taken in 2024/25, some 479,556, 26.1 per cent, were in automatics. That is up from 23.4 per cent the previous year, 19.2 per cent in 2022/23 and a mere 6.9 per cent a decade earlier.

In other words, automatic tests have moved from fewer than one in 14 examinations ten years ago to more than one in four today, and trade body projections suggest the figure could touch a third by 2027.

Despite the popular belief that they are easier, pass rates in automatics remain stubbornly lower than for manuals: 43.9 per cent versus a 48.7 per cent overall average in the last fiscal year. The catch, of course, is that an auto-only licence is a one-way door. Holders are legally barred from manual cars, which can sting when hiring abroad in markets where stick-shift rentals still dominate and automatic surcharges remain steep.

The models still flying the flag

For motorists, and fleet buyers, who still want a third pedal, the choice is narrowing but not yet bare. Dacia leads the field, offering manual transmissions across its entire six-strong combustion range (only the Spring EV is auto-only). Ford, Hyundai, Kia, Skoda and Volkswagen all still field five or six manual options, while Porsche keeps a manual 911 in the catalogue as a halo product. Jaguar, Honda, Lexus, Mercedes-Benz, Mini, Tesla, Land Rover and Volvo no longer offer a single manual variant in the UK.

Even Seat has thinned its line-up, with Ateca production ending in the past month. The direction of travel is unambiguous.

For SME owners weighing their next purchase, the message from VDG, the SMMT data and the DVSA’s own statistics is consistent: the era of the manual diesel, the so-called “motorway mile-muncher” beloved of sales reps under New Labour’s generous tax regime, is closing fast. The businesses that plan now for an auto-only, increasingly electrified fleet will be the ones least exposed when the showroom shutters finally come down on the gear stick.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

NEW YORK — Quantum computing stocks rose sharply on Thursday, May 21, 2026, after the Trump administration announced $2 billion in grants to nine companies in the sector, with the U.S. government set to take equity stakes in return.

The U.S. Department of Commerce is awarding the funding, drawn from the 2022 CHIPS and Science Act. IBM will receive $1 billion, while GlobalFoundries is set to receive $375 million.

Other recipients include D-Wave Quantum, Rigetti Computing and Infleqtion, each expected to receive about $100 million. Additional companies such as Atom Computing, PsiQuantum, Quantinuum and Diraq are also part of the package, with Diraq receiving around $38 million.

The deals include the U.S. government acquiring minority equity stakes in the companies. Commerce Secretary Howard Lutnick described the initiative as a push for a new era of American innovation amid competition with China.

Shares of companies involved rose significantly in premarket and early trading. Infleqtion jumped as much as 24%, while other quantum stocks posted gains between 7% and 25%. IBM and GlobalFoundries also advanced.

The announcement builds on discussions that began in October 2025, when the White House first indicated it might take equity stakes in quantum computing firms. The funding aims to strengthen U.S. leadership in the technology, which holds potential for advances in drug discovery, cryptography, materials science and artificial intelligence.

Quantum computing uses principles of quantum mechanics to perform calculations far beyond the capabilities of traditional computers. The sector has attracted growing investor interest as companies work toward practical, error-corrected systems.

The Trump administration’s move represents one of the largest direct federal investments in the quantum sector to date. Officials view quantum technology as strategically important for national security and economic competitiveness.

IBM, a leader in the field with its Quantum System Two, has been expanding its quantum hardware and cloud services. The company has partnerships with universities and corporations for research and development.

GlobalFoundries, a major semiconductor manufacturer, plays a key role in producing chips that support quantum systems. Other recipients like Rigetti Computing and D-Wave Quantum focus on different technical approaches, including superconducting and annealing systems.

The equity component of the deals allows the government to share in potential upside from commercial success. This structure differs from traditional grants and reflects a more active industrial policy approach.

Analysts have noted increased government support for critical technologies under the current administration. The funding complements earlier initiatives under the CHIPS Act aimed at bolstering domestic semiconductor and advanced technology manufacturing.

Quantum stocks have shown volatility in recent years but gained momentum in 2025 and 2026 amid technological milestones and growing commercial interest. Companies in the sector continue to face technical challenges, including error rates and scalability.

The Department of Commerce did not immediately release the full list of recipients or exact terms beyond the major allocations. Further details are expected in coming days.

Broader market reaction extended to related stocks in semiconductors and technology infrastructure. The announcement comes as global competition in quantum computing intensifies, particularly with China’s own heavy investments in the field.

Industry groups have welcomed the funding as a boost for U.S. innovation. The sector employs researchers, engineers and technicians across multiple states, with clusters in California, New York, Maryland and Colorado.

No official comment was immediately available from all recipient companies beyond initial statements confirming the agreements. IBM and GlobalFoundries acknowledged the funding in separate releases.

The grants are part of a larger strategy to maintain technological superiority in emerging fields. Quantum computing is seen as a foundational technology for the next decade, with applications in optimization, simulation and secure communications.

Trading volume in quantum-related stocks increased significantly following the news. Market participants will monitor how the equity stakes and funding translate into accelerated development timelines.

The development underscores growing bipartisan interest in securing supply chains and technological edges in strategic areas. Previous administrations also supported quantum research through various federal programs.

Further updates on project milestones and commercialization efforts are anticipated as companies deploy the new capital. The sector continues to attract private investment alongside government support.