Nvidia to Resume H20 AI Chip Sales to China After U.S. Assurance

Tone & Political Bias: Weakly Right-Leaning

Why: The article favors U.S. corporate interests, highlights Trump’s role, and critiques export restrictions without substantial attention to potential national security concerns.

What’s New

Nvidia confirmed on Tuesday that it plans to resume sales of its H20 AI chips to China after receiving reassurances from the U.S. government that licenses for the shipments would be granted. The H20 chips, previously halted due to export control restrictions, are expected to be delivered “soon,” according to the company.

This marks a major shift in policy that could boost Nvidia’s business prospects in China and ease trade tensions between Washington and Beijing.

Background on Export Ban

In April, the U.S. government imposed new licensing requirements on Nvidia’s H20 chip exports to China, effectively pausing deliveries. The H20 had been designed to comply with prior export rules and provide Nvidia a way to maintain business in China amid geopolitical tensions.

The sales halt significantly impacted Nvidia’s market share in China, which CEO Jensen Huang said had already been cut nearly in half due to the ongoing restrictions.

Role of U.S. Government and Trump

Nvidia said the U.S. government has now assured the company that licenses for H20 shipments will be approved. The statement followed a meeting between CEO Jensen Huang and President Donald Trump last week.

During the meeting, Huang reportedly voiced support for the administration’s domestic manufacturing goals and its ambitions to lead in global AI development.

Broader Trade Context

The decision also comes after Washington and Beijing agreed last month to a preliminary trade framework. The deal includes easing U.S. tech export restrictions and loosening China’s controls on rare-earth mineral exports. This diplomatic thaw appears to be influencing individual policy shifts like the H20 approval.

Nvidia’s Position in China

Huang is currently in China, where he met with government and industry officials to discuss artificial intelligence research and development. Nvidia said the visit focused on the responsible use of AI and ways to ensure its safety and security. Market data showed Nvidia shares rose by 4.5% on the Robinhood platform after news of the resumed H20 sales broke.

New GPU Also Announced

Separately, Nvidia introduced a new graphics processing unit, the RTX PRO, which it says is suitable for use in smart factories and logistics. While it is not clear whether the RTX PRO is intended for the Chinese market, the announcement highlights Nvidia’s effort to design export-compliant products amid shifting regulatory conditions.

Experts React

Ray Wang, a semiconductor and supply chain expert at Futurum Group, called the move “a significant and positive development” for Nvidia. He added that it positions the company to strengthen its lead in the Chinese market.

Wang also said the H20 shipment resumption, coupled with Nvidia’s future plans to launch China-specific AI chips, could drive company growth in the coming quarters.

Chinese Market Preferences

Louise Loo, lead China economist at Oxford Economics, told CNBC that Chinese manufacturers continue to prefer Nvidia’s chips over domestic alternatives. She said the export approval would buy time for China’s semiconductor industry as it works to develop its own AI-capable chips.

Local companies like Huawei have made gains, but China still lags behind Nvidia and top-tier chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC).

What This Means

• The U.S. may be adjusting its AI chip export policy for economic and strategic reasons.

• Nvidia’s ongoing influence in the Chinese tech market remains strong despite regulatory challenges.

• Washington’s trade posture toward China could be softening as part of a broader negotiation strategy.