Nvidia and AMD predicted to gain market share in China due to the relaxation of U.S. export controls
In a significant development, Nvidia, the American technology company known for its advanced AI chips, is set to resume exports of its H20 AI chips to China. This move follows a period of restrictions imposed by the Trump administration's Commerce Department in April 2025, which halted sales and potentially cost Nvidia $15 billion.
The US government has now given assurances that the necessary licenses will be granted soon, paving the way for Nvidia to regain access to a vital market. This decision represents a key recalibration in US-China tech trade policies.
Nvidia's CEO, Jensen Huang, expressed his appreciation for China's AI progress during a speech at the China International Supply Chain Expo in Beijing this week. Huang, who has praised Chinese AI models as "world class," considers anyone who belittles China's manufacturing capability as "deeply naive."
The resumption of H20 chip exports is significant for the Chinese AI industry, which heavily relies on Nvidia’s CUDA software stack—an integral part of most global AI development. The H20 chip, designed to comply with US trade curbs, is being introduced despite restrictions on most advanced Nvidia chips for sale to China.
While the H20 chip is less powerful than the H200, it still offers substantial capabilities and is expected to provide a crucial technology boost to China’s AI industry. Major Chinese technology firms, including Huawei Technologies, are likely to benefit from this development. During the absence of H20 and other advanced Nvidia chips in China, Huawei Technologies has been promoting its alternative products.
In the last fiscal year, Nvidia generated $17 billion in revenue from China, representing 13% of its total revenue. Both Nvidia and AMD see billions of dollars in revenue at stake from the Chinese market, making this decision a strategic one for both companies. The broader trade negotiation context includes the US lifting some restrictions on rare earth trade with China, facilitating the restart of AI chip exports.
This development underscores the interconnected nature of global tech trade and the importance of mutual cooperation in driving technological advancements. As the world continues to evolve, it is clear that the tech industry will play a crucial role in shaping the future of global relations.
- The resumption of Nvidia's H20 AI chip exports to China is expected to positively impact the Chinese tech industry, as Nvidia's CUDA software stack is heavily relied upon for global AI development.
- The decision to resume H20 chip exports is significant for both Nvidia and AMD, as the Chinese market represents a substantial source of revenue for both tech companies, amounting to billions of dollars.
- The interconnected nature of global tech trade is underscored by this development, as advancements in one market can significantly influence the progress of others, shaping the future of global relations.
