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US Reverses Ban on Nvidia's H20 AI Chip Sales to China in Major Policy Shift

In a stunning reversal, the Trump administration has approved Nvidia's sale of H20 AI chips to China, linking the move to a broader trade deal involving rare earth magnets.

Olivia Sharp 2 min read 377 views
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The Trump administration has reversed its ban on Nvidia's H20 AI chip sales to China, a move tied to a broader trade deal to ease Chinese export controls on rare earth magnets. The decision provides a major boost to Nvidia and signals a strategic shift in the US-China tech rivalry.

US Reverses Ban on Nvidia's H20 AI Chip Sales to China

The U.S. government has reversed its April 2025 ban, giving Nvidia the green light to resume sales of its advanced H20 AI chips to China. The move, announced by Nvidia CEO Jensen Huang on July 15, sent the company's stock up over 4% and was hailed by analysts as a "huge tailwind" for the tech market.

A Calculated Trade-Off

This isn't a simple concession. Administration officials confirmed the approval is a key part of a broader trade agreement. The key points are:

  • Chips for Magnets: The …

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