Nvidia Gets US Approval to Resume H20 Chip Sales in China

In a significant turnaround from previous export restrictions, Nvidia Corp. has announced plans to resume sales of its H20 AI accelerator chips to China, following fresh assurances from the US government that such shipments would now receive approval. This marks a major reversal from the Trump-era policies that had tightened semiconductor exports to China, impacting Nvidia’s operations and the broader global AI supply chain.

What Is the H20 Chip and Why Is It Important?

The H20 chip is a China-specific AI accelerator designed by Nvidia to comply with earlier US-imposed trade curbs. However, despite adhering to the modified export rules, the H20 was blocked from sale to China in April 2024 under an expansion of the restrictions. The chip was part of Nvidia’s adaptive strategy to serve Chinese customers while staying within the bounds of US export regulations.

Assurances from Washington Signal a Policy U-Turn

“US government officials have told Nvidia that they would green-light export licenses for the H20,”
the company revealed in a blog post on Monday.

This development indicates a softer regulatory tone from Washington, hinting at a willingness to reconsider earlier hardline stances, especially when national security concerns are not directly at risk.

A spokesperson from the US Commerce Department, which manages export controls on semiconductors, has not yet responded to the media regarding this policy shift.

Markets React Positively to Nvidia’s Announcement

Following Nvidia’s update, Nasdaq futures saw a significant uptick, and stock markets in Hong Kong and China also rallied. The Hang Seng Tech Index rose by up to 2.2%, while data center operators such as Beijing Sinnet Technology Co. surged by as much as 7.6%.

“Nvidia resuming the sale of H20 to China is obviously positive,”
said Vey-Sern Ling, Managing Director at Union Bancaire Privée.
“Not just for the company but also the AI semiconductor supply chain, as well as China tech platforms that are building AI capabilities. This is also a good development for US-China relations.”

Jensen Huang’s Diplomatic and Strategic Moves

Nvidia’s CEO Jensen Huang has been actively engaged in diplomacy. He recently met US President Donald Trump and is currently visiting Beijing to attend a major supply chain expo.

Huang has reassured Nvidia customers that he expects export licenses to be approved and that H20 shipments will resume soon.

New RTX PRO Chip to Complement China Strategy

In addition to reviving H20 sales, Nvidia plans to launch a new China-centric chip, the RTX PRO.

The company described it as “fully compliant,” meaning that it falls below the technical thresholds that would necessitate Washington’s approval in the first place.

This move reflects Nvidia’s continued effort to innovate within regulatory frameworks while maintaining access to the world’s second-largest AI market.

Trump Administration’s Reversal: A Win for Nvidia

The sudden reversal in H20 chip restrictions is being seen as a major victory for Huang and Nvidia.

Huang has been openly critical of Washington’s export curbs, saying in May that

the restrictions — covering both chips and manufacturing tools — were a “failure” that contributed to Huawei Technologies Co.'s rise.

More recently, he added:

“The US doesn’t need to worry about the Chinese military using Nvidia chips, since Beijing can’t rely on something the US could restrict at any point.”

Earlier Restrictions Cost Nvidia Billions

The H20, a less powerful version of Nvidia’s top-tier AI semiconductors, was introduced specifically for the Chinese market following successive waves of US sanctions starting in 2022. The H800 chip was the first to be restricted, followed by the H20.

After Trump officials controlled the sale of H20 chips in April, Huang said Nvidia would suffer a cost of billions of dollars due to unsold inventory.

Conclusion: A Strategic Reset in Global Tech Trade

Nvidia’s return to the Chinese market with its H20 AI chip marks not only a significant commercial gain but also a strategic development in global semiconductor diplomacy. As geopolitical tensions ease marginally, tech companies like Nvidia are cautiously optimistic about maintaining global supply chain stability while continuing to meet regulatory expectations.