Nvidia has revised its stance on China after initially planning to withdraw from the market, citing plans to restart sales of its H20 AI chip in the country. According to US Commerce Secretary Howard Lutnick, this decision is tied to ongoing trade discussions with China regarding rare-earth elements. These critical components, largely mined in China, are essential for technology development, including electric vehicle rechargeable batteries.
The move has sparked controversy, as some lawmakers argue that it would compromise export controls and hand advanced technologies to adversaries. However, Lutnick downplays the significance of Nvidia’s offerings, stating that China is only receiving its “fourth best” chip. The US is still grappling with developing clear AI chip export rules, which were recently rescinded by the Trump administration.
Source: https://techcrunch.com/2025/07/16/nvidias-resumption-of-h20-chip-sales-related-to-rare-earth-element-trade-talks