By John Meyer, consultant in financial affairs – Eurasia Business News, July 15, 2025. Article no. 1628

Nvidia has secured approval from the U.S. government, under the Trump administration, to resume sales of its H20 AI chip to China, reversing the export ban imposed in April 2025. This permission follows extensive lobbying and a meeting between Nvidia CEO Jensen Huang and former President Donald Trump, with the administration committing to issuing export licenses soon.

The H20 chip was specially designed for the Chinese market to comply with U.S. restrictions aimed at preventing China’s use of advanced AI technology for military purposes. Despite this, sales were blocked in April 2025, causing Nvidia to write down $4.5 billion in inventory and lose $2.5 billion in potential sales. Now, with the green light to apply for export licenses, Nvidia expects to restart shipments shortly and recover market access.

Alongside resuming H20 sales, Nvidia introduced a new RTX Pro GPU developed specifically for China that fully meets U.S. export regulations, targeting AI applications in smart factories and logistics.

CEO Jensen Huang emphasized the importance of serving the vibrant Chinese AI research community and expressed optimism about competing in this critical market. He is currently in Beijing engaging with Chinese officials as Nvidia participates in a supply chain expo.

This reversal signals a significant policy shift, easing tensions on technology exports to China and benefiting Nvidia’s business, which relies heavily on the Chinese market for roughly 20-25% of its revenue. Nvidia’s stock rose over 5% on the news, reflecting investor confidence in resumed Chinese sales.

On July 9 Nvidia became the world’s first $4 trillion company primarily due to its dominance in the AI chip market, which has fueled an unprecedented rally in its stock price. The company’s high-performance graphics processing units (GPUs) are essential for powering large language models and generative AI systems like ChatGPT, making Nvidia the backbone of the AI infrastructure boom.

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© Copyright 2025 – Eurasia Business News. Article no. 1628.