US Lifts Nvidia Chip Ban to Secure Rare Earths
Nvidia Corporation will resume H20 AI chip sales to China after the US government lifted export restrictions in exchange for rare-earth mineral concessions.
The United States government has lifted restrictions on the sale of Nvidia Corporation's H20 artificial intelligence chips to China, ending a ban imposed in April 2025. The decision follows extensive lobbying by CEO Jensen Huang and is characterized by U.S. officials as part of a trade truce to secure the resumption of Chinese exports of rare-earth minerals. The regulatory shift, approved by the U.S. Department of Commerce, removes a potential $15 billion revenue loss for the chipmaker and contributed to Nvidia becoming the first company to reach a $4 trillion market valuation.
Jensen Huang visited Beijing in July to attend the China International Supply Chain Expo and meet with Chinese government officials. During the trip, he praised China's AI innovation and warned that strict export controls are counterproductive, arguing they spur the growth of domestic rivals like Huawei. Huang asserted that the American tech stack must remain the global standard by being accessible to the world's developers, half of whom are based in China.
Despite the resumption of H20 sales, Nvidia faces intensifying competition from Huawei, which has developed a vertically integrated AI ecosystem to replace U.S. technology. Huang described Huawei as a formidable company that could entirely replace Nvidia in China if restrictions persist. While the H20 chips are now authorized, some analysts warn that revenue gains may be negligible until late 2025 due to supply chain ramp-up periods and pending licenses.
