Nvidia Pushes to Resume China AI Chip Sales After Trump Meeting as Export Curbs Show Signs of Easing

Nvidia is working to resume sales of its H20 artificial intelligence (AI) chips to China, just days after CEO Jensen Huang met with U.S. President Donald Trump. The move comes as the company awaits license approvals from the U.S. government, which had previously restricted advanced chip exports to China over national security concerns.

These export controls were projected to cost Nvidia $15 billion in lost revenue. The H20 GPU is part of Nvidia’s efforts to maintain a foothold in the Chinese market while navigating geopolitical constraints.

Despite the restrictions, major Chinese firms such as ByteDance and Tencent are rushing to secure orders for the H20 chips. According to sources, Nvidia has compiled a “whitelist” to manage orders from approved Chinese companies, all of which must be submitted to the U.S. government for review.

Though Nvidia did not comment on the whitelist, it confirmed efforts to comply with regulations by tailoring a new chip model specifically for the Chinese market. This reflects Nvidia’s adaptive strategy amid continued regulatory friction.

Jensen Huang Reinforces Nvidia’s China Ties Amid Political Scrutiny and Market Optimism

CEO Jensen Huang is currently in Beijing for a supply chain expo and has reiterated the strategic importance of China for Nvidia’s long-term growth. He praised the country’s innovation and AI talent, emphasizing the need for U.S. firms to remain engaged with China.

Huang’s visit follows a similar trip in April and underscores his commitment to reestablishing business ties despite heightened scrutiny. His presence in China is closely watched in both Beijing and Washington amid ongoing tech-related tensions.

News of the potential resumption of sales boosted Nvidia’s stock by 5%, with rival AMD also seeing a 3% gain despite facing similar export restrictions. Analysts see this as a positive development, given that many had written off China’s contribution to Nvidia’s revenue.

However, political challenges remain. U.S. senators recently cautioned Huang against engaging with Chinese firms tied to military or intelligence agencies, reflecting ongoing bipartisan concern in Washington over tech transfer risks.

Nvidia Navigates Export Curbs as U.S.-China Tech Relations Show Cautious Signs of Easing

Nvidia’s situation highlights the delicate balance in U.S.-China tech relations, with both nations making tentative steps to ease tensions. China has relaxed rare earth export controls, and the U.S. has allowed chip design software access to restart in China. Yet, uncertainties remain.

Industry experts note that Chinese firms are likely to diversify their supply chains regardless of any temporary reprieve, to shield themselves from future disruptions. The H20 chip’s earlier ban led to a $5.5 billion inventory write-down, and the potential resumption of sales could reverse some of those losses.

In anticipation of tighter regulations, Nvidia has developed a new AI chip, the RTX Pro GPU, explicitly designed for the Chinese market and compliant with U.S. export rules. This chip, part of the Blackwell architecture, is expected to serve less demanding AI applications at a lower price than the H20.

China remains a vital market for Nvidia, generating $17 billion in annual revenue, or 13% of its global sales. If licenses are approved and sales resume quickly, Nvidia could recapture up to $20 billion in lost revenue and potentially reverse significant impairment charges from earlier this year.