Nvidia Wins US Approval to Resume H20 Chip Sales in China

Nvidia, the dominant force in AI chip production, has reentered the Chinese market with US approval, reigniting debates about semiconductor geopolitics. The MOVE underscores Washington's strategic balancing act—allowing controlled technology exports while maintaining leverage over China's AI development.

Chinese firms remain dependent on Nvidia's CUDA platform, a dependency that reinforces US technological leadership. "This relationship is symbiotic, but China needs US technology more at this stage," observes Daniel Newman of Futurum Group. The temporary reprieve grants China breathing room to advance its domestic semiconductor capabilities.

Earlier export restrictions on the downgraded H20 chips—designed to comply with US regulations—had forced Nvidia to absorb a $4.5 billion writedown. The reversal signals calibrated de-escalation in tech trade tensions, with both nations weighing economic interests against security concerns.