Nvidia's China Chip Sales: A Controversial Resumption

Nvidia plans to resume sales of its H20 AI chips to China, sparking controversy over the U.S. export policy amid national security concerns. Both political parties in the U.S. scrutinize the decision, alleging contradictions to previous policies. Nvidia's possible return to the Chinese market could reshape the AI industry landscape.

Nvidia is set to resume sales of its H20 AI chips to China, a move intertwined with ongoing U.S. negotiations over rare earths. This decision follows Nvidia CEO Jensen Huang's meeting with U.S. President Donald Trump. The U.S. assured Nvidia of receiving necessary licenses soon.

The planned resumption, reversing previous export restrictions aimed at safeguarding national security, has drawn bipartisan criticism in Washington. Democratic Representative Raja Krishnamoorthi and Republican John Moolenaar have voiced concerns, highlighting potential risks of advanced AI technology reaching China's hands.

Despite these concerns, the resumption could significantly impact Nvidia's market presence, given China's substantial sales contribution. As companies like ByteDance and Tencent prepare applications, Nvidia's efforts underscore the intricate balance between commercial interests and geopolitical tensions.

(With inputs from agencies.)