US technology giant Nvidia has announced that it will soon resume sales of its high-end artificial intelligence (AI) chips to China. The US government has assured the firm that it will grant the necessary licenses to restart exports to the world’s second-largest economy. This move reverses a ban imposed by the Trump administration in April over concerns that the chips could be used by the Chinese military.
According to Nvidia, the US government has given the green light for the company to sell its H20 AI chips to China. The H20 chip was developed specifically for the Chinese market after US export restrictions were imposed in 2023. Nvidia’s chief executive, Jensen Huang, has been lobbying both sides for a resumption of sales, emphasizing the importance of the Chinese market for the company’s growth.
Huang met with Trump to reaffirm Nvidia’s commitment to creating jobs and ensuring the US leads in AI worldwide. He also met Chinese government and industry officials to discuss how AI can raise productivity and ways to advance research safely. “Nvidia resuming the sale of H20 to China is obviously positive,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “Not just for the company but also the AI semiconductor supply chain, as well as China tech platforms that are building AI capabilities”.
The announcement comes amid easing trade tensions between Beijing and Washington. In May, the two governments agreed to a temporary truce in their tariffs war and set a deadline to reach a longer-term deal over high tariffs imposed on each other. Recently, Beijing relaxed trade controls on rare earth exports, while the US lifted restrictions on chip design software firms operating in China.
Nvidia has also unveiled a new AI chip designed specifically for the Chinese market, called the RTX Pro GPU. The company described the model as “fully compliant” with US export controls and suitable for digital twin AI applications in sectors such as smart factories and logistics. Deliveries of the H20 chips are expected to begin soon, pending regulatory approval.
The development marks a significant shift in US tech export policy, highlighting an easing of tensions amid ongoing trade negotiations between Washington and Beijing. China’s state-controlled tabloid Global Times reported that Nvidia expects to secure approvals imminently and commence deliveries thereafter. With China ranking among Nvidia’s top buyers globally, this move is seen as a crucial step in re-establishing the company’s presence in the Chinese market.