“Nvidia said it has received assurances from the Trump administration that it can sell its H20 artificial-intelligence chip in China, days after Chief Executive Jensen Huang met President Trump.
The turnabout comes after the Commerce Department had restricted sales of the chip in April, costing Nvidia billions of dollars. It is welcome news for the $4 trillion chip company and Huang, who is visiting Beijing this week.
The administration said Nvidia would be allowed to sell the H20 chip after licenses are granted by the Commerce Department, according to the company. Nvidia said it would begin deliveries soon. In addition, it said it has developed a new chip with lower performance that meets all U.S. export criteria so it can be shipped to China.
The approval could be seen as a gesture of good faith by the U.S. in its trade talks with China. Access to chips and advanced technology has been a main priority for Chinese negotiators.
The approvals will be some of the only licenses being granted by the Trump administration, which is restricting exports of AI chips and other products to protect national security.
Huang plans to meet top Chinese officials during his stay in Beijing, people familiar with the matter said.
Huang met Trump last week, attempting to persuade the president that his company should be allowed to continue to do business with China and tap AI talent there, according to people familiar with the meeting.
Huang told Trump that Nvidia should be allowed to sell its technology freely to most parts of the world so American companies can dominate AI instead of Chinese companies, the people said. The CEO also discussed similar topics with Commerce Secretary Howard Lutnick, they said.
The globe-trotting Huang has become one of the world's most recognizable corporate executives because of the growing prominence of artificial intelligence in the global economy.
Nvidia chips are vital for cutting-edge data centers that train AI models and operate AI applications. Few companies are caught in the U.S.-China trade war as much as Nvidia, pushing Huang to spend more time making his case to politicians.” [1]
Chinese negotiators have appeared to link progress in lifting export controls on military-use rare earth magnets with the long-standing US curbs on exports of advanced AI chips, including those manufactured by Nvidia, to China
Rare Earth Dominance and Leverage: China controls a significant portion of the global rare earth supply and nearly all the heavy rare earth elements essential for high-performance magnets used in industries like defense and electric vehicles. This dominance gives China significant leverage in trade negotiations.
US Chip Export Controls: The US has restricted exports of advanced AI chips, citing concerns about their potential use in modernizing China's military and gaining a technological advantage.
Negotiation Strategy: China has reportedly used its control over rare earth exports as a bargaining chip to pressure the US to ease restrictions on advanced technology exports, including high-end chips. This tactic aims to highlight the US's dependence on Chinese rare earths while simultaneously challenging US tech export controls.
Impact on US Industries: China's rare earth export restrictions have impacted US manufacturing, particularly in sectors reliant on these minerals, like the automotive industry and defense. This highlights the US's vulnerability due to its reliance on Chinese rare earth resources.
Reports suggest that while China is willing to expedite rare earth export approvals for non-military US manufacturers, they are less inclined to ease restrictions on military-use rare earth magnets without concessions on advanced chip exports.
The US has signaled that it is unwilling to offer a "quid pro quo" by easing AI chip export curbs in exchange for rare earth access, particularly regarding the highest-end chips.
China's restrictions on rare earth exports are part of a broader strategy that also includes policies like the "Made in China 2025" initiative, aiming to transform China into a leader in strategically important high-tech industries.
In essence, China is leveraging its rare earth dominance as a strategic tool in its ongoing economic and technological competition with the US, aiming to secure access to advanced technologies like high-end chips while addressing its own needs for these resources in its high-tech industries and military modernization efforts.
1. Nvidia Wins OK On China Chip Sales. Huang, Raffaele; Ramkumar, Amrith. Wall Street Journal, Eastern edition; New York, N.Y.. 15 July 2025: A1.
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