Nvidia To Resume AI Chip Sales To China After U.S. Government Reversal

Nvidia (NVDA) says it will soon resume sales of its H20 artificial intelligence (AI) microchips to China after the U.S. government rolled back its export curbs on the Asian nation.

The administration of U.S. President Donald Trump had told Nvidia in April that it would require a license to sell its microchips and processors to China, effectively halting sales to that country.

However, now the U.S. government appears to be letting up on its export controls.

“The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the company said in a statement issued after markets closed on July 14.

Nvidia’s less powerful H20 chip has been designed specifically to meet the U.S. requirements of sales to China.

Nvidia CEO Jensen Huang has ramped up his lobbying efforts against export controls, arguing that they inhibit American technology leadership.

The potential change in the U.S. government’s stance follows a meeting between Huang and President Trump last week.

During the talks, Huang reaffirmed Nvidia’s support for the administration’s job creation and onshoring efforts, as well as the aim for America to lead in AI technologies.

Huang has also traveled to China to meet government and industry officials and discuss the benefits of AI and ways for researchers to advance safe and secure AI.

Also, the U.S. and Chinese governments have agreed to a preliminary trade pact that relaxes rare-earth export controls by China in exchange for easing technology export curbs by the U.S.

There are reports that Nvidia is working on a new AI chip for the Chinese market that is even less advanced than the H20 processor.

Nvidia’s stock is up 5% in premarket trading on news of chip sales to China resuming. So far in 2025, NVDA stock has advanced 19% to trade at $164.07 U.S. per share.