TLDR: The Trump administration has given its approval for Nvidia to resume sales of its advanced H20 artificial intelligence chips to Chinese buyers, marking a significant reversal of previous restrictions. Nvidia CEO Jensen Huang confirmed the development, stating the company expects to begin deliveries soon after securing the necessary licenses.
In a pivotal shift in U.S. tech policy, the Trump administration has granted approval for Nvidia to sell its advanced H20 artificial intelligence chips to China, overturning earlier export restrictions. Nvidia CEO Jensen Huang announced the breakthrough, indicating that the company has received assurances from the U.S. government that licenses will be granted, with deliveries anticipated to commence shortly. This decision follows intense lobbying efforts by Huang and other prominent tech executives, who argued that stringent export controls could undermine American competitiveness and market share in the crucial Chinese market.
The H20 chip, a China-specific variant designed to comply with previous trade curbs, had itself been subjected to a ban without a U.S. permit since April. This latest approval represents a dramatic reversal from the administration’s earlier stance, which had aimed to restrict sales of Nvidia’s H20 and AMD’s MI308 chips to Beijing, citing national security concerns.
Jensen Huang, who has been actively promoting AI’s global benefits and engaging with policymakers in both Washington and Beijing, shared the news via a company blog post and an interview with China’s state-run CGTN. He emphasized the innovative and dynamic nature of the Chinese market, underscoring the importance for American companies to compete and serve it. Huang also highlighted that half of the world’s AI researchers are based in China, reinforcing the market’s significance.
The reversal comes amidst a period of thawing relations between Washington and Beijing, reportedly guided by an opaque truce aimed at facilitating the approval of crucial technology exports. The U.S. is reportedly seeking increased sales of essential rare-earth minerals from China in exchange for lifting certain export controls.
Nvidia had previously faced significant financial implications due to the export restrictions. The company incurred a $4.5 billion inventory write-down tied to unsold H20 chips in the fiscal first quarter ending April 28, and had projected an $8 billion plunge in revenue for the second quarter. The approval to resume sales is a substantial win for Nvidia, mitigating these potential losses and allowing it to re-engage with a vital market where its China revenue surged 66 percent to a record high of $17.1 billion in fiscal 2025, accounting for 13 percent of its total income.
In addition to the H20 sales, Huang also revealed plans to launch a new graphics card, ‘RTX Pro,’ designed exclusively for China. This card is specifically tailored for computer graphics, digital twins, and AI applications, fully complying with current U.S. government export regulations.
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Huang’s recent visits to China, including meetings with officials like Ren Hongbin, chairman of the China Council for the Promotion of International Trade, and Xiaomi CEO Lei Jun, underscore Nvidia’s commitment to the Chinese market and its efforts to navigate the complex geopolitical landscape.
