Nvidia, the global AI chip giant, will resume sales of its H20 AI chip to China. This indicates a major change in trade relations between the US and China. This move follows new guidance from the US Department of Commerce. (Photo: Social)
Nvidia, the global AI chip giant, will resume sales of its H20 AI chip to China. This indicates a major change in trade relations between the US and China. This move follows new guidance from the US Department of Commerce.
The Export Ban brings losses to Nvidia
The export ban on Nvidia’s chip was imposed in April 2025, it led to significant financial losses for the company. The H20 chip accounted for approximately 13% of Nvidia’s 2024 revenue. The halt cost the company billions of dollars in losses during Q1 and Q2 of 2025. Nvidia is now set to re-enter one of its most critical markets.
Policy shift in Rare Earth Minerals
This policy shift is believed to be part of a broader trade agreement between the US and China, including rare earth minerals. In exchange for increased Chinese exports of rare earth magnets, the US has agreed to ease export restrictions on AI chips, microchip software, ethane, and jet engines. Treasury Secretary Scott Bessent confirmed that the chip ban was used as a negotiating tool to rebalance trade and tariffs.
Nvidia to continue dominating Global Chip Market
The continuation of chip sales to China could impact the global AI race. China has recently developed models like DeepSeek using Nvidia hardware. This reflects Nvidia’s central role in the global AI ecosystem. Its chips power key technologies, including large language models and autonomous systems.
AMD, another US chipmaker, has also announced their plans to resume AI chip exports to China. These further signals a shift in tech trade policy. Jensen Huang, the CEO of Nvidia is expected to address these developments in details very soon.
The resumption of AI chip sales may mark a critical moment in the evolving US-China tech relationship.
Also Tag: Why Nvidia CEO Jensen Huang Defied US Warnings And Traveled To China?
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
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