Nvidia Set to Resume H20 AI Chip Sales to China Amid U.S. Policy Shifts

In a significant reversal of earlier restrictions, Nvidia Corp. announced plans to restart sales of its H20 artificial intelligence accelerator to China, following assurances from U.S. officials that the exports would be permitted.

Nvidia revealed in a blog post that the U.S. government has agreed to approve export licenses for the H20 chip — a model designed specifically for China to comply with previous trade regulations. Although compliant, the H20 was also banned from Chinese markets in April due to tightened export controls. The U.S. Commerce Department, responsible for overseeing semiconductor exports, has not yet commented on the matter.

Market Reaction: Global Stocks Surge

The announcement sent ripples through global markets. Nasdaq futures rose sharply, and Hong Kong’s Hang Seng Tech Index climbed as much as 2.2%. Chinese data center companies also benefited, with Beijing Sinnet Technology Co. soaring up to 7.6%.

“This is a clear positive,” said Vey-Sern Ling, Managing Director at Union Bancaire Privée. “It boosts Nvidia, the broader AI supply chain, and China’s tech firms pushing into AI. It's also a constructive step for U.S.-China tech relations.”

Nvidia’s Strategic Engagement and New Chip Plans

CEO Jensen Huang has been actively engaging with political and industry leaders, meeting with former President Donald Trump last week and attending a major supply chain expo in Beijing this week. Huang expressed confidence that Nvidia would soon secure the necessary licenses and resume shipments.

In parallel, Nvidia is preparing to launch a new China-focused AI chip, the RTX PRO. This processor is designed to fall below U.S. export control thresholds, allowing it to be sold without prior government approval.

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A Policy U-Turn with Billion-Dollar Implications

The decision marks a major policy shift from the Trump administration’s prior hardline stance on AI chip exports to China. For Huang, who has criticised the export restrictions as counterproductive, this is a major victory. He previously described the U.S. curbs as a “failure” that inadvertently bolstered companies like Huawei and questioned the national security rationale behind the controls.

Background: The H20 and U.S. Sanctions

The H20 is a scaled-down version of Nvidia’s industry-leading AI chips, specifically tailored for the Chinese market in response to U.S. trade restrictions first introduced in 2022. Those rules were progressively tightened, impacting successive chip generations — first the H800, then the H20.

When the H20 was blocked in April, Nvidia projected billions of dollars in losses due to unsellable inventory. With the recent policy reversal, the company now has a path to recover and continue operating in one of its most critical markets.

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