Nvidia Resumes AI Chip Sales to China, US Restrictions Lifted

Published Date : 16/07/2025 

American chipmaking giant Nvidia announces it will resume sales of its AI chip to China, marking a significant reversal of US export restrictions and a boost to the global tech race. 

American chipmaking giant Nvidia says it plans to resume sales to China of an artificial intelligence chip that has become a key part of the global tech race. This decision comes after Nvidia CEO Jensen Huang met with President Donald Trump at the White House last week. Huang has argued that restricting sales of American technology to China could jeopardize the US's position as a global AI leader, while also causing the company to lose out on billions of dollars in revenue.

The announcement was closely followed by a similar statement from AMD, another major chipmaker, which also plans to restart sales of its AI chips to China. “We were recently informed by the Department of Commerce that license applications to export MI308 products to China will be moving forward for review,” AMD said in a statement. “We plan to resume shipments as licenses are approved. We applaud the progress made by the Trump Administration in advancing trade negotiations and its commitment to US AI leadership.”

The White House did not immediately respond to a request for comment. Treasury Secretary Scott Bessent, however, told Bloomberg that the Nvidia export controls have been a “negotiating chip” in the broader US-China trade talks, which have recently seen both countries agree to lower tariffs on each other.

Nvidia is the world’s most valuable company, having recently become the first publicly traded firm to reach a valuation of $4 trillion, thanks to its pivotal role in the artificial intelligence market. The company’s chips power a wide range of technologies, from AI chatbots to robotics and self-driving cars. The H20 chip, released last year, was designed to maintain access to the Chinese market, which accounted for 13% of Nvidia’s sales in 2024, despite strict US export controls.

However, in April, the White House informed Nvidia that it would need a special license to export the H20 to China, leading to a halt in sales. The H20 is widely believed to have contributed to DeepSeek, an advanced Chinese AI model. On Monday, Nvidia announced that it had applied to sell the H20 in China again and received assurances from the US government that those licenses will be approved, allowing the company to “start deliveries soon.”

The US government has sought to restrict China’s access to American technology to prevent the advancement of its military and AI systems. Huang, however, has argued that if American tech companies are barred from selling to China, Chinese developers will create their own technology, potentially undermining US leadership. “In order for America to be the world leader, just like we want the world to be built on the American dollar, using the American dollar as a global standard, we want the American tech stack to be the global standard,” Huang told CNN’s Fareed Zakaria in an interview that aired Sunday. “We love that the internet is created by American technology and is built on American technology, and so we should continue to aspire to that.”

Nvidia reported in May that it missed out on $2.5 billion in additional revenue from H20 sales to China during the first quarter of 2025 and expected another $8 billion revenue loss during the second quarter. Last month, Nvidia announced it would no longer include China in its sales and profit forecasts due to the uncertainty surrounding export controls. Huang is scheduled to hold a media briefing in Beijing on Wednesday, marking his second visit to China this year, where he has emphasized the importance of the Chinese market.

This move by Nvidia and AMD to resume sales to China represents a significant shift in the ongoing tech and trade negotiations between the US and China, with potential implications for global tech leadership and economic relations. 

Frequently Asked Questions (FAQS): 

Q: Why did Nvidia halt sales of its AI chip to China?

A: Nvidia halted sales of its AI chip to China in April after the White House informed the company that it would need a special license to export the H20 chip, which is believed to have contributed to an advanced Chinese AI model called DeepSeek.

Q: What is the significance of Nvidia resuming sales to China?

A: Resuming sales to China is significant because it marks a reversal of US export restrictions and could boost Nvidia's revenue, which was significantly impacted by the halt in sales. It also has implications for the global tech race and US-China relations.

Q: How does the US government view the export of AI chips to China?

A: The US government has sought to restrict China's access to American technology to prevent the advancement of its military and AI systems. However, the recent decision to allow licenses for Nvidia and AMD indicates a shift in this stance.

Q: What is the potential impact of these sales on the global AI market?

A: Resuming sales of AI chips to China could strengthen the global AI market by ensuring that American technology remains a standard. It could also influence the development of AI technologies in China and other countries.

Q: What is Jensen Huang's stance on US export controls?

A: Jensen Huang, CEO of Nvidia, has argued that restricting sales of American technology to China could put the US position as a global AI leader at risk. He believes that American tech should remain the global standard. 

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