Nvidia announced on Tuesday that it is filing applications with the U.S. government to resume sales of its previously restricted H20 GPU to clients in China. “The U.S. government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon,” the company said in a press release. This development marks a significant shift for Nvidia, which has faced setbacks due to U.S. export curbs.
In April, the U.S. government informed Nvidia that it would require a license to sell the H20 chips to China, effectively halting their sales. The H20 chips were designed specifically to bypass earlier export controls on Beijing. Nvidia CEO Jensen Huang has been actively lobbying against export controls in recent months, arguing that they inhibit American tech leadership.
In May, Huang emphasized that chip restrictions had already impacted Nvidia’s business in China. The potential policy change follows a recent meeting between Huang and U.S. President Donald Trump. During the discussions, Huang reaffirmed Nvidia’s support for the administration’s job creation and onshoring efforts, as well as the aim for America to lead in global AI.
Last month, Washington and Beijing agreed to a preliminary trade framework that eased some trade tensions, allowing relaxing rare-earth export controls by China and easing tech export curbs by the U.S.
Huang also announced a new “fully compliant” GPU — the RTX PRO — designed for smart factories and logistics.
Nvidia seeks approval for China sales
It was not clear if this reference was regarding compliance with guidelines for exports to China.
Nvidia has been working on a new AI chip for the Chinese market, which would be less advanced than the H20. However, the potential resumption of H20 chip sales to China comes as a surprise, said Ray Wang, research director of semiconductors, supply chain, and emerging technology at Futurum Group. “The lifting of the H20 ban marks a significant and positive development for Nvidia, which will enable the company to reinforce its leadership in China,” Wang noted.
“The resumption of H20 shipments — alongside the upcoming rollout of new export control-compliant AI chips for the Chinese market — should serve as a fresh growth catalyst in the coming quarters,” he added. Nvidia shares were up 4.5% on trading platforms by 12:20 a.m. ET. On Tuesday, Nvidia also confirmed that Huang was in China and had met with government and industry officials to discuss the benefits of AI and ways for researchers to advance safe and secure AI.
Louise Loo, lead economist for China at Oxford Economics, stated that a reversal of the H20 export controls would provide Chinese manufacturers more time as they await advancements in China’s indigenous technology. “Manufacturers in China are preferring these Nvidia chips,” she added. Nvidia’s potential resumption of H20 chip sales to China represents a significant step forward for the company and has implications for the global tech industry.
