Nvidia Resumes Sales of AI Chips to China Amid Regulatory Shift

2025-07-15 companies

Santa Clara, Tuesday, 15 July 2025.
Nvidia has received U.S. approval to resume sales of its H20 AI chips in China, unveiling a new model aligning with Chinese regulations. This move is pivotal amid U.S.-China trade tensions, enhancing Nvidia’s revenue prospects.

Navigating Trade Restrictions

Nvidia Corporation, denoted by its ticker NVDA.O, has announced the resumption of its H20 AI chip sales to China following U.S. regulatory approval. This decision marks a significant policy shift from previous restrictions that were part of a broader strategy to curb China’s access to advanced semiconductor technology. As of July 14, 2025, the U.S. government had assured Nvidia that relevant export licenses would be provided, facilitating a renewed trade flow to the Chinese market [1][2][3][4].

Product Adaptation and Compliance

In conjunction with resuming sales, Nvidia has introduced the ‘RTX Pro,’ a new AI chip model designed to be fully compliant with Chinese regulations. This strategic product adaptation underscores Nvidia’s commitment to maintaining its presence in China’s tech market while adhering to international trade policies. The RTX Pro is specifically tailored for digital twin AI applications, which are prevalent in sectors like smart factories and logistics [1][2][5].

Economic Implications for Nvidia

Nvidia’s move to resume sales comes at a crucial time, as China accounted for $17 billion in revenue, or 13% of Nvidia’s total sales in fiscal year 2025. This statistic highlights the market’s significance despite the prevailing export controls. Furthermore, with Nvidia’s market value surpassing $4 trillion recently, the company continues to be a driving force in the global AI sector amid international regulatory dynamics [6][5].

U.S.-China Diplomatic Dynamics

The approval for Nvidia to renew its chip sales aligns with recent diplomatic developments between Washington and Beijing. The governments have been engaged in negotiations aimed at easing some of the trade tensions that have impacted various economic sectors over the years. Jensen Huang, Nvidia’s CEO, has been actively involved in discussions with both U.S. and Chinese officials to promote AI cooperation and clarify the positive impacts of open-source research and development. These dialogues are part of the broader efforts to reconcile competitive engagements with collaborative frameworks [1][7][8].

Sources

China Nvidia