Nvidia Resumes H20 AI Chip Sales to China after U.S. Eases Export Restrictions

Nvidia has announced the resumption of its H20 AI chip sales to China, following the U.S. government's decision to grant export licenses. This move marks a significant shift in U.S.-China technology trade relations and comes after a previous ban imposed in April due to national security concerns.

The H20 chips are designed to comply with U.S. export restrictions and are less powerful than Nvidia’s top-tier models, which remain prohibited for the Chinese market. Nvidia CEO Jensen Huang, who recently met with President Donald Trump and Chinese officials, emphasized the importance of U.S. companies maintaining competitiveness in the Chinese tech market.

In April 2025, the U.S. government imposed a ban on the sale of Nvidia's H20 AI chips to China, citing national security concerns. Nvidia anticipated a $5.5 billion revenue loss due to the export restrictions. The H20 chips were specifically designed to comply with U.S. export restrictions, offering reduced computational power compared to Nvidia's top-tier models.

Nvidia CEO Jensen Huang met with President Trump and Chinese officials to advocate for the resumption of H20 chip sales, emphasizing the importance of maintaining U.S. competitiveness in the Chinese tech market. The decision to resume sales follows lobbying efforts from Nvidia and a related trade agreement involving rare earth magnets. The move has sparked bipartisan concern in Congress about potential military use of U.S. AI technologies by China.

Jensen Huang stated, "It's so innovative and dynamic here in China that it's really important that American companies are able to compete and serve the market here." Commerce Secretary Howard Lutnick confirmed that the easing of restrictions was part of recent trade negotiations, stating, "The U.S. has eased restrictions on Nvidia’s AI chip exports to China following trade negotiations between the two countries focusing on rare earth elements."

Nvidia's stock surged over 5% following the announcement, reaching a new high of $172.2 per share and elevating its market value to $4.2 trillion. The resumption of H20 chip sales is expected to influence the competitive landscape, particularly affecting Chinese AI companies like DeepSeek, which rely on Nvidia's hardware. The easing of export restrictions may signal a shift in U.S.-China relations, potentially impacting global tech supply chains and international trade policies.

Nvidia's resumption of H20 AI chip sales to China marks a significant development in the intersection of technology, international trade, and geopolitics. This move not only affects Nvidia's market position but also has broader implications for U.S.-China relations and the global tech industry.