Nvidia resumes sales of H20 chips amid trade talks with China

Nvidia's decision to restart H20 chip sales links to trade talks with China over rare earth elements.

Nvidia resumes sales of H20 chips amid rare earth element discussions

Nvidia has announced it will resume sales of its H20 AI chip to China, reversing its earlier decision to withdraw from that market. This change comes amidst ongoing trade discussions between the U.S. and China regarding rare earth elements, which are essential for many technological products. U.S. Commerce Secretary Howard Lutnick confirmed that these negotiations influence Nvidia's move. Meanwhile, Congressman Raja Krishnamoorthi criticized the decision, arguing it contradicts the U.S. administration's stance on export controls. Lutnick responded by suggesting that China would only receive Nvidia's lesser-quality chips.

Nvidia's shift in strategy may indicate a growing reliance on rare earth elements from China, highlighting the delicate balance in U.S.-China relations. As companies navigate complex trade dynamics, this situation showcases a potential gap between regulatory intentions and market realities. The criticism from lawmakers signals that this issue could fuel further debate about technology exports and national security concerns.

Highlights

The outcome of trade negotiations may reshape technology export policies significantly.