Nvidia to resume sales of highly desired AI computer chips to China
BANGKOK--Nvidia's CEO Jensen Huang says the technology giant has won approval from the Trump administration to sell its advanced H20 computer chips used to develop artificial intelligence to China.
The news came in a company blog post late Monday, which stated that the U.S. government had 'assured' Nvidia that licenses would be granted — and that the company 'hopes to start deliveries soon.' Shares of the California-based chipmaker were up over 4% by midday Tuesday.
Huang also spoke about the coup on China's state-run CGTN television network, in remarks shown on X.
'Today, I'm announcing that the U.S. government has approved for us filing licenses to start shipping H20s,' Huang told reporters in Beijing.
He added that half of the world's AI researchers are in China. 'It's so innovative and dynamic here in China that it's really important that American companies are able to compete and serve the market here,' he said.
Huang recently met with President Donald Trump and other U.S. policymakers — and is in Beijing this week to attend a supply chain conference and speak with Chinese officials. The broadcast showed Huang meeting with Ren Hongbin, the head of the China Council for Promotion of International Trade, host of the China International Supply Chain Expo, which Huang was attending. Nvidia is an exhibitor.
Nvidia has profited enormously from the rapid adoption of AI, becoming the first company to have its market value surpass $4 trillion last week. However, the trade rivalry between the U.S. and China has been weighing heavily on the industry.
Here's what we know.
The H20 graphics processing unit, or GPU, is an advanced AI chip — a type of device used to build and update a range of AI systems. But it's less powerful than Nvidia's top semiconductors today.
That's because the H20 chip was developed to specifically comply with U.S. restrictions for exports of AI chips to China. Nvidia's most advanced chips, which carry more computing power, are off-limits to the Chinese market.
Washington has been tightening controls on exports of advanced technology to China for years, citing concerns that know-how meant for civilian use could be deployed for military purposes. And in January, before Trump began his second term in office, President Joe Biden's administration launched a new framework for exporting advanced computer chips used to develop AI — in an attempt to balance national security concerns about the technology with the economic interests of producers and other countries.
Restrictions on sales of advanced chips to China have been central to the AI race between the world's two largest economic powers, but such controls are also controversial. Proponents argue that these restrictions are necessary to slow China down enough to allow U.S. companies to keep their lead. Meanwhile, opponents say the export controls have loopholes — and could still spur innovation. The emergence of China's DeepSeek AI chatbot in January particularly renewed concerns over how China might use advanced chips to help develop its own AI capabilities.
In April, the White House announced that it would restrict sales of Nvidia's H20 chips to China — as well as MI308 chips from rival chipmaker Advanced Micro Devices — with the Trump administration again citing national security.
At the time, Nvidia said these tighter export controls would cost the company an extra $5.5 billion — and Huang and other technology leaders have been lobbying Trump to reverse the restrictions since. They've argued that such limits hinder U.S. competition in a sector in one of the world's largest markets for technology and have also warned that U.S. export controls could end up pushing other countries toward China's AI technology.
Monday's announcement from Nvidia signals that its lobbying efforts paid off. White House AI and crypto adviser David Sacks told Bloomberg on Tuesday that allowing Nvidia to restart Chinese sales of its H20 chip would help the U.S. better compete abroad — particularly with Chinese chipmaker Huawei Technologies.
Meanwhile, Commerce Secretary Howard Lutnick told CNBC on Tuesday that the renewed sale of H20 chips in China was linked to a trade agreement made between the two countries on rare earth magnets — and maintained that the administration was also reversing course from April's restrictions because the U.S. still doesn't sell China 'our best stuff.'
Still, calls for restrictions on advanced chip exports to China have persisted among U.S. lawmakers on both sides of the aisle.
Just last week, Sens. Elizabeth Warren and Jim Banks wrote a letter to Huang noting that the hardware powering advanced AI 'is of immense strategic importance' — and again warned that this kind of technology could be used to accelerate Beijing's effort to modernize its military if exported freely. U.S. lawmakers have also proposed that chips subject to export controls should be tracked, to ensure they don't end up in the wrong places.
Beyond export controls, California-based Nvidia — like other tech giants today — has been caught in the crosshairs of Trump's tariff wars abroad, particularly amid America's tit-for-tat levies with China. But Beijing and Washington recently agreed to pull back some non-tariff restrictions. China says it's approving permits for rare earth magnets to be exported to the U.S., while Washington has lifted curbs on chip design software and jet engines.
Nvidia and its CEO have also garnered Trump's favor in recent months. In April, the company announced that it would be producing its AI chips in the U.S. for the first time, starting with more than one million square feet of manufacturing space to build and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas.
Trump was quick to applaud Nvidia's move. He introduced Huang as a 'smart cookie' who was helping bring jobs to the U.S. at an 'Investing in America' event held at the White House later that month.
Similar to Nvidia, AMD is now also poised to restart Chinese sales of its MI308 chips. The California-based company said in a statement that the Commerce Department was moving forward with license applications for these exports to China, and that it plans to resume shipments as those licenses are approved.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Nikkei Asia
3 hours ago
- Nikkei Asia
Nikkei Asia journalist wins Singapore Press Club award
Nikkei Asia's scoop on a family office scandal "created ripples across the global wealth management industry," the Singapore Press Club says. Nikkei staff writers TOKYO -- Singapore-based Nikkei Asia reporter Dylan Loh has won a financial journalism award from the Singapore Press Club for his scoop on a family office scandal in the city-state, the organization announced on Wednesday. "Singapore family office of rich Chinese hit by $55m fraud scandal," published on March 18, reported that a wealthy Chinese businessman had accused the staff of his Singapore-based family office of misappropriating tens of millions of dollars.
Nikkei Asia
4 hours ago
- Nikkei Asia
Chinese solar companies shrink US footprint as Trump cuts incentives
Energy Loss of tax credits 'a huge blow' despite growing demand for renewables An employee at Trina Solar plant in Jiangsu province, China. Trina sold its U.S. solar module facility in Texas to T1 Energy in December 2024. © AP PAK YIU NEW YORK -- Chinese solar companies are retreating from the U.S. as the Trump administration's massive tax-and-spending act ends incentives for projects tied to China. Two leading manufacturers, JA Solar and Trina Solar, have sold panel factories in the past seven months and other Chinese companies are assessing their presence in the world's second-largest energy consumer.
The Mainichi
4 hours ago
- The Mainichi
Opinion: Ishiba skipping NATO summit exposes gaps in Japan's Europe engagement
By Sayuri Romei and Alice Dell'Era WASHINGTON (Kyodo) -- Since a Japanese prime minister first attended a NATO summit in 2022, Japan has sent its highest-level representative to the event for three consecutive years. Russia's full-scale invasion of Ukraine in February 2022 was a key catalyst for Tokyo's decision to attend that year, and the 2025 summit in The Hague would have marked the fourth consecutive appearance by a Japanese leader. Prime Minister Shigeru Ishiba was expected to meet with like-minded NATO partners to deepen cooperation amid the security challenges that link the Euro-Atlantic and Indo-Pacific theaters. However, his participation was abruptly canceled, with Foreign Minister Takeshi Iwaya attending in his place. The decision not to attend personally represents a missed opportunity to strengthen ties with Europe at a time when Japan's strategic thinking is increasingly turning toward this region. Ishiba's glaring absence comes at a sensitive moment for Japan, as it confronts growing Chinese assertiveness while managing a more unpredictable United States. While previous U.S. administrations invested significant diplomatic and political capital in promoting cross-regional cooperation between NATO and its Indo-Pacific Four (IP4) partners, the current Trump administration has shown far less interest in advancing such efforts. In fact, President Donald Trump announced he would not attend a meeting between NATO and the IP4 partners during the summit in The Hague -- a move that likely prompted three of the four Indo-Pacific countries to cancel their leaders' attendance. Trump's emphasis on narrow, transactional negotiations over defense spending within allies' respective regions has broken the momentum for cross-regional cooperation built over the past three years. In this context, Ishiba's decision to skip the summit reflects Tokyo's desire to avoid confrontation with Trump over contentious issues such as defense expenditures and trade. These topics remain especially sensitive given the Japanese government's fragile approval ratings and the upcoming upper house elections in July. Ishiba's absence may have been an effort to preserve strategic flexibility in an increasingly unpredictable environment, but it risks halting the progress that Tokyo is making in advancing defense industrial ties with European NATO partners at a critical juncture. As geopolitical competition intensifies, defense technology innovation and a robust defense industrial base have emerged as indispensable strategic assets. Yet, this is an area where Japan has traditionally lagged, due to the longstanding constraints on its defense industry and heavy reliance on U.S. procurements. The tide, however, appears to be shifting. In its 2022 strategic documents, Tokyo identified reinforcing its defense production and technology base as a national priority. Since 2023, Japan has eased its export controls, allowing the licensed export of domestically produced defense equipment, including lethal systems, to boost competitiveness through economies of scale and access to overseas markets. At the same time, Tokyo seeks to diversify its defense procurement and development partnerships beyond the United States, increasingly turning towards European partners. As Japan carefully balances its security and economic relations with its ally, concerns over U.S. unpredictability have indeed elevated the importance of European partners for Tokyo's foreign and defense policy. Europe now features prominently in Japanese strategic thinking, with Tokyo expanding security cooperation with several European states at the bilateral and multilateral levels, through mechanisms like NATO IP4 and the Global Combat Air Programme (GCAP). GCAP, a new Japan-Italy-U.K. partnership for the development of a sixth-generation fighter jet, has been described as a "new alliance" since the multilayered cooperation between the three governments, militaries, and industries will inevitably strengthen security ties among the three nations. Japan's extensive and asymmetric dependence on U.S. defense collaboration and procurement has long been a source of frustration for Japanese officials and defense companies. According to a defense expert interviewed in July 2024, Tokyo maintains a "painful memory" of its co-development with the U.S. on the F-2 fighter program in the 1980s, which continues to shape Japanese perceptions. U.S. restrictions on the sharing of confidential technical information, coupled with the inability to freely modify procured systems without U.S. approval, have complicated both co-development programs like the F-2 and procurement of F-35s. An expert on Japan's defense industrial policy, also interviewed in July 2024, observed that the U.S. Foreign Military Sales system remains fundamentally "asymmetrical" since "the Japanese government cannot acquire necessary or valuable technological information." This lack of technological freedom creates persistent challenges for Japan's defense autonomy. In reaction to these concerns, Japan is diversifying defense industrial collaboration. Beyond GCAP, Japan is partnering with the U.K. on Joint New Air-to-Air Missiles (JNAAM) and a universal radio frequency sensor technology (JAGUAR), while collaborating with France on mine countermeasures, and trilaterally with France and Germany on railgun technologies. Reflecting this trend, the Financial Times reported on a notable increase in the presence of European defense companies at Japan's 2025 Defense and Security Equipment International (DSEI) expo. Moreover, in November 2024, Japan and the EU issued the "Japan-EU Security and Defence Partnership," their first-ever document outlining concrete cooperation initiatives in maritime security, space, cybersecurity, and hybrid threats. These efforts have gained urgency with Trump's return to the White House, as his administration's transactional approach to alliances raises new uncertainties for all allies. While these initiatives do not indicate a pivot away from the United States, they mark the growing significance of European partners for Japan. According to the Financial Times, Tokyo canceled the annual "two-plus-two" security dialogue scheduled in Washington after the U.S. suddenly asked its ally to boost defense spending to 3.5 percent -- higher than its previous request of 3 percent. Whether the cancellation was due to Washington's latest demand or a simple scheduling conflict, there is no denying that the two allies will need to face some difficult conversations in the coming months. Lack of technological freedom and overreliance on the U.S. for defense technology risk making Japan a captive of its own alliance, as the U.S. president has shown little hesitation in demanding higher purchases of American weapon systems, including offering the new F-47 to Japan as a bargaining chip in tariff negotiations. As Washington increasingly treats arms sales and security guarantees as transactional tools for managing trade imbalances, Japan, like Europe, faces the challenge of balancing U.S. demands while seeking diversification for its security partnerships. Ishiba's absence from this year's NATO summit, while shielding Japan from potentially difficult discussions with Washington in the short term, is therefore a missed opportunity for advancing ties with NATO partners at a critical moment. One of the objectives of the newly established Mission of Japan to NATO is to enhance European understanding of Japan and the Indo-Pacific. Ishiba's decision not to attend following the cancellations by other IP4 leaders may show a lack of leadership in the region, but it also risks sending the signal to Europeans that the Indo-Pacific is, after all, not as important as when former Prime Minister Fumio Kishida used to repeat "Ukraine today may be East Asia tomorrow." Ishiba, who replaced Kishida in October 2024, has yet to visit Europe, despite the fact that relations with European countries have taken on increasing importance in recent years. His personal engagement with European leaders would have signaled Japan's commitment to deepening these strategic partnerships -- a gesture increasingly valuable as both Japan and its European partners navigate the uncertainties of managing their respective alliances in the coming years. (Sayuri Romei is a Washington-based senior fellow in the German Marshall Fund's Indo-Pacific program. Her research focuses on U.S.-Japan relations and security issues in the Indo-Pacific region.)
