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Nvidia Announces Resuming AI Chip Sales to China

(MENAFN) US-based tech powerhouse Nvidia has announced it will soon recommence the sale of its premium artificial intelligence (AI) chips to China.

According to a statement shared in a blog post, the company revealed that the US government has provided assurances that the necessary licenses to restart shipments to the world’s second-largest economy will be granted.

This decision marks a reversal of the previous prohibition on Nvidia's H20 chips, a ban that was implemented by US President Donald Trump's administration in April.

The restriction had been enforced due to fears that the advanced chips could be exploited by China’s military forces.

The H20 chips have played a central role in export restrictions intended to block Beijing’s access to state-of-the-art technology, especially as the competition in AI development intensifies between China and the United States.

A news agency noted that the US Department of Commerce has not yet provided a response to inquiries regarding this matter.

Initially, the H20 chip was engineered to meet the demands of the Chinese market following export controls introduced by President Biden's administration in 2023.

Despite being tailored for China, the product's distribution was effectively suspended in April 2025 when the Trump administration reinstated harsher trade measures.

This announcement arrives as economic tensions between the United States and China show signs of relaxation. In May, both nations reached a temporary ceasefire in their ongoing tariff dispute.

As part of this de-escalation, they agreed on a deadline of 12 August to finalize a broader agreement addressing the elevated tariffs that have been in place since Trump returned to the presidency earlier this year.

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