Nvidia CEO Advocates for Eased Chip Export Restrictions Amid US-China Trade Tensions

Nvidia CEO Jensen Huang has tempered his efforts to lobby the WHITE House for relaxed export controls on advanced H20 chips to China. Huang asserts that resolving trade barriers now rests with both governments, despite Nvidia's active role in presenting technical and market data. The Chinese AI sector—projected to reach $50 billion within three years—remains largely untapped by U.S. firms due to these restrictions.

Huang highlighted Huawei's competitive threat in China's AI infrastructure market, suggesting Beijing could pivot to domestic alternatives if U.S. access remains constrained. Nvidia reported $4.5 billion in unsold H20 inventory in May, attributing a $2.5 billion quarterly revenue shortfall directly to export controls. The company's China market share has halved, incurring over $5 million in losses.

In a parallel development, the U.S. lifted May-era restrictions on chip design software, allowing Synopsys and Cadence to resume China sales. This trade concession coincides with China's agreement to review rare earth export applications—a tentative step toward détente.