Nvidia Can Sell AI Chip to China Again

By Bitknow — July 15, 2025

Nvidia has received U.S. government approval to resume sales of its H20 AI chip to China, following a personal meeting between the company’s CEO, Jensen Huang, and President Donald Trump.

The move reverses earlier restrictions from the Commerce Department that blocked sales in April, costing Nvidia billions in potential revenue. The company confirmed that the U.S. will now grant licenses to allow shipments of the downgraded chip, specifically designed for China.

“I’m very happy,” Huang told reporters while visiting Beijing.

Nvidia’s stock jumped over 4% on the news in early Tuesday trading.

Why the Ban Was Lifted

The U.S. had placed strict controls on AI chip exports to China over national security concerns. Nvidia’s H20 chip was affected, although it was already modified to comply with U.S. export rules. Huang reportedly met with Trump and Commerce Secretary Howard Lutnick to argue that selling this chip wouldn’t give China access to the most advanced technology.

“Huang made the case that U.S. companies should lead globally, not be held back by confusing rules,” said a person familiar with the meeting.

The meeting seems to have worked. Officials close to Beijing viewed the reversal as a positive signal in ongoing trade talks.

A Strategic Move in U.S. China Relations

Huang’s visit to Beijing his third this year focused on maintaining Nvidia’s presence in China. In meetings with Chinese officials, he emphasized the company’s commitment to continuing business within the limits of U.S. policy.

He also revealed that Nvidia is developing a new AI chip for China, useful for automation and logistics, based on its Blackwell chip design but with certain high-end features disabled to stay compliant.

Nvidia’s Rising Influence

Nvidia recently became the world’s most valuable company, crossing a $4 trillion valuation. The company's chips are critical to powering AI models and global data centers.

“Nvidia’s importance in both U.S. tech dominance and U.S.–China tensions makes Huang one of the most powerful tech leaders today,” a tech policy analyst told [Your News Outlet].

However, the company still faces risks. U.S. lawmakers remain wary of Nvidia’s China ties. Senators Jim Banks and Elizabeth Warren recently wrote to Huang, warning him not to engage with Chinese military-linked companies.

Quick Facts