Nvidia to resume AI chip sales to China following US approval, reversing previous export ban and signaling easing trade tensions between Washington and Beijing.
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| Nvidia announces restart of H20 chip sales to China after securing US export licenses, marking a shift in US-China tech trade dynamics. Image: CH |
Shenzhen, China — July 16, 2025:
Nvidia, the U.S.-based tech giant and global leader in artificial intelligence (AI) hardware, has announced it will resume sales of its high-end AI chips to China, following the U.S. government's decision to grant the necessary export licenses. The move effectively reverses a ban implemented in April by the administration of U.S. President Donald Trump, which had prohibited sales of Nvidia’s H20 chips to Beijing over national security concerns.
In a blog post published Tuesday, Nvidia said it had received assurances from U.S. authorities allowing exports of the H20 chip—designed specifically for the Chinese market in response to earlier Biden-era restrictions—to recommence.
The H20 chip had become a focal point in U.S.-China tech tensions, with Washington seeking to prevent advanced AI hardware from potentially aiding the Chinese military. Its sale was previously blocked as part of a broader push to curb Beijing's access to cutting-edge technology amid intensifying competition in the global AI race.
The announcement comes at a time when relations between the world's two largest economies appear to be stabilizing. In May, Washington and Beijing reached a temporary truce in their long-running tariff war, setting a deadline of August 12 to finalize a broader trade agreement. As part of the recent thaw, China eased restrictions on rare earth exports, while the U.S. lifted some limitations on chip design software companies operating in the Chinese market.
Nvidia CEO Jensen Huang has played a central role in negotiating the policy shift. Huang, currently in China, held meetings with both U.S. and Chinese officials, reaffirming Nvidia’s commitment to supporting job creation and global AI leadership, while also discussing with Chinese leaders how AI can safely enhance productivity.
“Nvidia has always viewed China as a key strategic market,” the company said. China remains one of Nvidia’s top global customers, and the lifting of the ban is expected to restore a crucial revenue stream for the chipmaker.
The policy reversal arrives on the heels of Nvidia achieving a historic milestone last week, becoming the world’s first company to reach a $4 trillion market valuation.
While the U.S. Department of Commerce has not commented publicly on the licensing decision, the resumption of AI chip sales is widely seen as a signal of a more pragmatic approach to U.S.-China trade and tech relations.