Nvidia resumes sales of H20 chips to China amid regulatory changes

In July 2025, Nvidia's CEO Jensen Huang announced that the company had secured approval from the U.S. government to sell its advanced H20 artificial intelligence computer chips to China. This decision marks a significant reversal of previous U.S. export restrictions imposed on high-performance chip sales to China, which had constrained the company's prospects in a rapidly growing market. Huang's comments were made during a blog post and an interview with China's state-run CGTN network, highlighting the importance of the Chinese market for U.S. technology firms. In April 2025, the White House announced stringent measures to limit sales of advanced chips, significantly impacting Nvidia's revenue. At that time, Nvidia warned that these tighter export controls could lead to a loss of $5.5 billion and curtail potential revenues by up to $15 billion. This environment of escalating tensions over technology exports had forced Nvidia to adapt its products to comply with U.S. regulations, including creating a slightly less powerful version of the H20 chip. This latest development facilitates a renewed opportunity for Nvidia to engage with Chinese data centers that rely on their chips to support various artificial intelligence applications. Jensen Huang's visit to China coincided with his discussions with American policymakers, including President Donald Trump, possibly indicating a strategic approach to balancing trade relations between the U.S. and China. By resuming sales, Nvidia stands to benefit from China's massive demand for advanced AI technologies, which significantly contributes to the company's overall revenue. Last year, Nvidia reported earning $17 billion from its operations in China, which represented a vital 13% of its total sales. The shift in U.S. policy comes amid decreasing tensions between the two economic powerhouses, hinting at a possible thaw in trade relations. Analysts pointed out that easing restrictions on strategic technologies could enhance the competitive landscape for American firms in the thriving Chinese market. However, long-term impacts of the resumed sales will depend on geopolitical factors and the adaptability of U.S. firms to the changing regulatory environment in China. The recent approval places Nvidia in a favorable position, potentially leading to substantial revenue growth and benefiting associated sectors like data centers, which continue to rely heavily on advanced computing technologies.