Nvidia plans to re‑launch H20 AI chip sales in China.
Nvidia Restarts H2O Chip Sales to China under U.S. Export Relief
California‑based semiconductor leader Nvidia announced it will resume shipping its H2O AI processors to the Chinese market after the U.S. government pledged to lift export licensing restrictions that had halted exports.
Background: Export Curbs and the H2O Chip
Nvidia’s H2O is a scaled‑down version of its flagship AI GPU designed specifically for export to countries that the U.S. administers under national security concerns. In April, the Trump administration tightened export licensing requirements, putting a stop to shipments of the chip to China.
Event: Nvidia’s Application to Regain Sales Licenses
On Tuesday, Nvidia released a statement saying it was “filing applications to sell the Nvidia H2O GPU again.” The company added that “the U.S. government has assured Nvidia that licences will be granted, and Nvidia hopes to start deliveries soon.”
CEO Jensen Huang Announces U.S. Approval on Video
Video published by Chinese state broadcaster CCTV showed CEO Jensen Huang wearing his trademark black leather jacket addressing journalists. He said:
- “The U.S. government has approved for us (to file) licences to start shipping H2Os, and so we will start to sell H2Os to the Chinese market.”
- “I’m looking forward to shipping H2Os very soon, and so I’m very happy with that very, very good news.”
Huang’s Upcoming China Involvement
CCTV reported that Huang will attend a major supply‑chain event on Wednesday. The Taiwan‑born executive will also present at the Opening Ceremony of the 3rd China International Supply Chain Expo on July 16 and participate in related activities.
Key Points:
- Huang’s third trip to China this year.
- He will engage in “activities related to the Expo.”
Strategic Context: China’s Importance for Nvidia
China remains a crucial market for Nvidia. The U.S. export curbs have left the company battling competition from local players such as Huawei, whose domestic dominance has been reinforced by U.S. restrictions. Beijing has criticized Washington’s limitations as “unfair” and “designed to hinder development.”
Tone of the Dialogue: Positive and Forward‑Looking
In April, Huang told Chinese Vice Premier He Lifeng that he “looked favorably upon the potential of the Chinese economy” and that he was “willing to continue to plough deeply into the Chinese market and play a positive role in promoting U.S.–China trade cooperation.” This statement was reported by Xinhua state news agency.
Impact of U.S. Curbs amid China’s Economic Volatility
The tightened U.S. export curbs arrived as China’s economy faced de‑spending from domestic consumers and a prolonged property sector crisis weighing on growth. President Xi Jinping has called for China to become more self‑reliant as uncertainty in the external environment increases.
The Financial Times reported in May that Nvidia was planning to build a research and development centre in Shanghai. Neither Nvidia nor the city’s authorities confirmed the project to AFP at the time.
China’s Q2 Economic Performance
China’s economy grew 5.2 percent in the second quarter of the year, official data showed on Tuesday. The growth was below analysts’ predictions of strong exports, but it remains notable given growing trade‑war pressures.
