Nvidia Says US Lifts AI Chip Export Ban to China Resumes H20 Shipments

Nvidia Resumes AI Chip Sales to China After US Lifts Export Ban

Nvidia confirms US has lifted its April export ban on H20 AI chips to China unveils new compliant chip and prepares to restart shipments signaling a major tech policy shift .

Nvidia has confirmed that the United States government has lifted its ban on the export of its H20 artificial intelligence AI chips to China reversing a key trade restriction imposed in April 2025 The chipmaker stated it is now in the process of applying for export licenses and plans to resume shipments soon This announcement marks a significant change in USChina tech relations and opens the door for renewed business between Nvidia and Chinese tech firms .

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New ChinaSpecific AI Chips Approved

In addition to resuming H20 shipments Nvidia unveiled a new AI chip specifically tailored for the Chinese market The chip is said to be fully compliant with US export regulations Known informally as the RTX Pro 6000D the new design features a scaleddown GPU that omits highbandwidth memory HBM and NVLink two advanced features restricted under export controls This strategic redesign allows Nvidia to maintain its Chinese client base while adhering to evolving US policy .

Leadership Diplomacy and Strategic Timing

CEO Jensen Huang is currently visiting Beijing following a highprofile meeting with President Trump in Washington DC During his China visit Huang is expected to meet Premier Li Qiang These engagements reflect Nvidia’s dual diplomatic and business mission to navigate tensions while preserving its position in the worlds secondlargest AI hardware market .

Positive Market Reaction

News of the policy shift and resumed shipments sparked a surge in Nvidia’s stock price with shares rising between 4% and 5% in early trading to around $170.22 The company had previously taken a $45 billion hit due to the halted shipments in April Analysts believe that the reversal signals new growth opportunities as the Chinese AI sector reopens to foreign chipmakers .

Strategic and Security Considerations

China contributed approximately 13% of Nvidia’s total revenue last year roughly $17 billion Despite this US officials have voiced concern that AI chips might be diverted for military or surveillance use Huang has publicly dismissed these fears emphasizing a clear distinction between civilian and military technologies .

Broader Implications and Competitive Landscape

This US policy adjustment highlights a shift from blanket export bans toward casebycase licensing However critics argue that the strategy lacks coordination with allies and could create policy loopholes Meanwhile Chinese tech companies like Huawei and Biren continue pushing to build domestic AI chip capabilities posing a longterm challenge to Nvidia’s dominance in the region .

Whats Next

Nvidia is set to apply for H20 export licenses and initiate deliveries in the near future With a new compliant chip in hand and ongoing diplomatic outreach the company is working to ensure longterm access to the Chinese market Industry analysts will be watching closely to see how this policy change affects global AI competition and US export strategy in the years ahead .