NVIDIA to Resume H20 Chip Sales in China Amid US Market Milestone

NVIDIA CEO Jensen Huang announced plans to resume sales of H20 AI chips in China, marking his third visit to the country in six months. The move coincides with NVIDIA achieving a $4 trillion market cap milestone in the US. Huang emphasized the importance of coordinating with both US and Chinese governments and the restart of the supply chain is underway, expected to take up to nine months. The H20 chips have significant capabilities for AI model training and NVIDIA aims to introduce more advanced chips in the future.

NVIDIA, the leading AI chip manufacturer, announced on Tuesday that it is resuming sales of its H20 AI chips to China. The move comes after months of negotiations and follows a meeting between NVIDIA CEO Jensen Huang and U.S. President Donald Trump. This decision marks a significant shift in U.S.-China tech policy and could have wide-reaching implications for the global AI industry.

The H20 chips, designed to bypass earlier export controls on Beijing, had been restricted by the U.S. government in April. NVIDIA had been lobbying against these export curbs, arguing that they inhibited American tech leadership. The company stated that the U.S. government has assured NVIDIA that licenses will be granted, and deliveries are expected to start soon [1].

Jensen Huang, who has visited China three times in the past six months, emphasized the importance of coordinating with both U.S. and Chinese governments. The restart of the supply chain is underway and is expected to take up to nine months. The H20 chips are significant for AI model training, and NVIDIA aims to introduce more advanced chips in the future [1].

The decision to resume H20 chip sales to China comes as part of a broader trade agreement between the U.S. and China over rare earth exports. U.S. Commerce Secretary Howard Lutnick stated that the resumption of sales is part of the negotiation over rare earths [2].

However, the move has sparked criticism from U.S. legislators. Democratic Representative Raja Krishnamoorthi and Republican John Moolenaar have raised concerns about the potential security risks and the inconsistency with previous export control policies [2].

NVIDIA's stock price rose by 4.5% on trading platform Robinhood as of 12:20 a.m. ET, reflecting investor optimism about the company's new market opportunities [1].

In Beijing, Huang met with government and industry officials to discuss the benefits of AI and ways to advance safe and secure AI technologies. He also highlighted China's importance in the AI sector, stating that half of the world's AI researchers are in China [3].

The approval of H20 chip sales to China marks a significant moment in U.S.-China tech relations, which have been strained due to national security concerns. The Biden administration had launched a framework to regulate chip exports used in AI development, but this latest decision could strengthen NVIDIA's position in the global AI race [3].

References:
[1] https://www.cnbc.com/2025/07/15/nvidia-says-us-government-will-allow-it-to-resume-h20-ai-chip-sales-to-china.html
[2] https://www.business-standard.com/world-news/nvidia-h20-chip-sale-china-trump-admin-howard-lutnick-rare-earth-magnet-125071600319_1.html
[3] https://www.republicworld.com/world-news/nvidia-gets-green-light-to-sell-advanced-ai-chips-to-china-under-trump-administration