TL;DR
- Nvidia announces plans to resume sales of its H20 AI chips to China following reassurances from the U.S. government.
- This decision reverses earlier restrictions imposed by the Trump administration due to concerns about AI technology’s military applications.
- AMD is also set to restart its AI chip exports to China, reflecting a thaw in U.S.-China trade relations.
- The resumption of sales is significant for Nvidia, potentially adding billions to its revenue.
Nvidia to Restart AI Chip Sales to China
In a significant shift in strategy, Nvidia Corp. has announced that it will resume sales of its H20 artificial intelligence chips to China, reversing previous bans imposed due to U.S. export restrictions. This decision comes after assurances from the U.S. government regarding the approval of necessary export licenses, marking a pivotal moment in U.S.-China trade relations.
The H20 chip, which was specifically developed for compliance with earlier trade restrictions, had been effectively banned from sales in April 2025 under the Trump administration due to concerns that its technology could benefit the Chinese military. However, Nvidia CEO Jensen Huang reported that the Biden administration's recent changes in policy allow the company to pursue sales again, a move that could potentially add billions to its revenue stream.
Reversal of Restrictions
Previously, the U.S. Department of Commerce had mandated a licensing requirement for the export of advanced AI chips, with further restrictions tightening in April 2025. During that period, Nvidia faced challenges as its sales in China, which constituted a substantial portion of its revenue, were severely impacted. According to Huang, Nvidia lost an estimated $5.5 billion in revenue from halted sales due to these restrictions.
In a statement regarding the resumption, Nvidia expressed optimism, stating: “We plan to resume shipments as licenses are approved. We applaud the progress made in advancing trade negotiations and its commitment to U.S. AI leadership.” Huang's ongoing efforts to lobby U.S. officials underscore Nvidia's recognition of China as a crucial market, contributing approximately 13% of its total sales, which amounted to $17 billion last year[^1].
AMD Joins the Fray
Nvidia is not alone in this strategic pivot; fellow chipmaker Advanced Micro Devices (AMD) has also announced plans to restart shipments of its MI308 AI chips to China, following similar reassurances from U.S. authorities. This simultaneous move might indicate a broader policy shift toward easing technological trade restrictions with China.
The easing of these restrictions is seen as part of a larger trend of thawing relations between Washington and Beijing, alleviating some of the economic pressures that have characterized their interactions in recent years. As trade negotiations continue, analysts speculate this could lead to enhanced collaboration between U.S. tech companies and Chinese enterprises, fostering innovation in AI and advanced technologies.
Implications for Global AI Markets
The potential for Nvidia and AMD to restart their chip sales to China is seen as not only a business opportunity but also a strategic necessity in the highly competitive AI chip market. Currently, the global AI hardware landscape is marked by escalating competition, particularly from Chinese firms like Huawei, which have been rapidly expanding their own AI chip capabilities.
With Huawei's significant investment in developing domestic alternatives, the stakes for Nvidia's H20 chip sales are high[^4][^6]. As U.S. chip manufacturers seek to secure their market positions, the dynamics of supply chains, regulatory compliance, and competitive pricing will play critical roles in determining their success.
Conclusion
The decision by Nvidia to restart sales of its H20 AI chips to China reflects a broader recalibration of U.S. trade policy and an acknowledgment of the critical importance of the Chinese market for American tech firms. As both Nvidia and AMD prepare to navigate this new landscape, the implications for global AI supply chains, technological innovation, and U.S.- China relations remain to be seen.
As the international chip market evolves, stakeholders will closely monitor how these developments impact the competitive landscape, particularly amidst ongoing geopolitical tensions. Nvidia's expected revenue boost could signal a revival of American chip manufacturing ambitions, albeit intertwined with complex global trade relationships.
References
[^1]: "Nvidia, AMD to Resume AI Chip Sales to China after U.S. Reversal." (2025). Los Angeles Times. Retrieved October 2023.
[^2]: "Nvidia says it will restart AI chip sales to China." (2025). BBC News. Retrieved October 2023.
[^3]: Duffy, Clare. (2025). "Nvidia says it will restart H20 AI chip sales to China 'soon.'". CNN Business. Retrieved October 2023.
[^4]: "Nvidia expects license to sell H20 AI chip to China again." (2025). Bloomberg. Retrieved October 2023.
[^5]: "Nvidia, AMD to resume AI chip exports to China." (2025). SiliconANGLE. Retrieved October 2023.
[^6]: "Nvidia to Boost H20 Chip Sales to China After US Export Restrictions Ease." (2025). Trax Technologies. Retrieved October 2023.
Keywords: Nvidia, AI chips, China, export restrictions, AMD, market strategy, U.S.-China relations