U.S. tech powerhouse Nvidia is gearing up to resume sales of its H20 artificial intelligence chips to China, following a green light from Washington that eases previous export restrictions.
The California-based chipmaker โ best known for producing some of the worldโs most advanced semiconductors โ had been caught in the crossfire of growing U.S.-China tensions. Washington had blocked exports of Nvidiaโs most powerful AI chips, worried they could end up bolstering Chinaโs military technology.
In response, Nvidia designed a toned-down version of its AI hardware โ the H20 chip โ specifically for the Chinese market. But those plans stalled earlier this year when the Trump-era export license rules were reinforced, putting shipments on hold.
Now, things are back in motion. On Tuesday, Nvidia announced it is once again applying to sell the H20 chip and expects approval soon.
“The U.S. government has assured Nvidia that licenses will be granted,” the company said. “Nvidia hopes to start deliveries soon.”
In a video interview with Chinese state broadcaster CCTV, Nvidia CEO Jensen Huang confirmed the news, saying, โWe will start to sell H20s to the Chinese market. I’m very happy with that โ it’s very, very good news.โ
Huang, known for his signature black leather jacket, will be in China this week to attend a major tech supply chain event โ his third visit to the country this year.
Industry analysts believe the move could deliver a much-needed revenue boost for Nvidia. Zhang Guobin, founder of Chinese tech site eetrend.com, said the resumed sales could “make up for the losses caused by the previous ban” and ease pressure on the global chip supply chain.
Still, Zhang warned that Chinese firms are pushing hard to become self-reliant in chipmaking, especially given the unpredictability of U.S. trade policy. “The Trump administration has been prone to abrupt policy shifts,” he noted.
Nvidia faces tough competition in China, particularly from local tech giant Huawei, which has been gaining ground amid the U.S. export squeeze.
Despite the challenges, Nvidia has shown strong interest in deepening its ties with China. Back in April, Huang told Chinese Vice Premier He Lifeng that he saw great potential in the Chinese economy and expressed a desire to keep investing in the market.
Meanwhile, Chinaโs economy remains under pressure. Domestic spending is sluggish, and the property sector continues to drag on growth. Still, China managed to post a 5.2% growth rate in the second quarter of 2025 โ a sign of resilience despite ongoing trade tensions.
Reports earlier this year hinted that Nvidia may be planning to open a research and development center in Shanghai. However, neither the company nor local officials have confirmed the project.
As the global tech race heats up, all eyes will be on Nvidiaโs next moves โ and how long this current window of opportunity in China might stay open.
