Nvidia to Resume AI Chip Sales to China Following US Government Approval
Tech Giant’s CEO Met with President Trump Amid Trade Negotiations
American semiconductor powerhouse Nvidia plans to recommence selling a key artificial intelligence chip to China, a move that could ease tensions in the escalating global tech race between the world’s two largest economies.
Advancing Trade Talks and AI Leadership
The announcement follows a recent meeting between Nvidia CEO Jensen Huang and President Donald Trump at the White House. Huang had previously voiced concerns that restrictions on American technology sales to China risked undermining the U.S. position as a global AI leader and were costing Nvidia billions in lost revenue.
Nvidia, the company that has dominated the AI chip market, is making waves again. After a meeting with President Trump, they’re looking to restart sales of a crucial AI chip to China. This could be a significant development in the ongoing US-China tech and trade discussions. 🚀 #AI #Nvidia #China #TechWar
— World Today News (@WorldTodayNews) July 22, 2025
Competitor AMD also indicated plans to restart AI chip sales to China, stating they were informed by the Department of Commerce that license applications for their MI308 products would be reviewed. The company applauded the Trump administration’s efforts in trade negotiations and its commitment to U.S. AI supremacy.
Export Controls as a Negotiating Chip
Treasury Secretary Scott Bessent suggested to Bloomberg that the Nvidia export controls had served as a “negotiating chip” within broader U.S.-China trade discussions, which have already seen agreements on tariff reductions.
Nvidia’s Dominance in the AI Market
Nvidia, currently the world’s most valuable company after recently surpassing a $4 trillion valuation, owes its success largely to its foundational role in the artificial intelligence sector. Its chips power a vast array of advanced technologies, from AI chatbots to autonomous vehicles.
Navigating US Restrictions
Last year, Nvidia introduced its H20 chip specifically to maintain access to the Chinese market, which accounted for 13% of its sales in 2024. However, U.S. export controls mandated a special license for H20 shipments to China, halting sales. The H20 is reportedly utilized in advanced Chinese AI models like DeepSeek.
On Monday, Nvidia confirmed it had reapplied for export licenses and received assurances from the U.S. government that approvals are forthcoming, paving the way for “start deliveries soon.”
The Strategic Importance of AI Technology
The U.S. government has aimed to prevent China from leveraging American technology to bolster its military and AI capabilities. Huang, however, contends that such restrictions could inadvertently spur China to develop its own proprietary technologies, ultimately diminishing U.S. 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,”
—Jensen Huang, CEO of Nvidia
Huang elaborated in a recent interview, expressing a desire for American technology to set the global standard, akin to the U.S. dollar’s international role. He emphasized the importance of maintaining American technological dominance online.
Earlier this year, Nvidia reported that it anticipated missing out on $2.5 billion in revenue from H20 sales to China in the first quarter of 2025, with projected losses escalating to $8 billion in the second quarter. Consequently, the company excluded China from its sales and profit forecasts due to the persistent uncertainty surrounding export regulations.
Huang is slated to conduct a media briefing in Beijing this Wednesday during his participation in a supply chain exposition, marking his second visit to China this year. On his April trip, he underscored the critical importance of the Chinese market to Nvidia’s operations.
