Nvidia chip ban lifted as rare earth talks reshape U.S.–China tech trade

Nvidia is expected to resume sales of its H20 AI chip to China after the U.S. Commerce Department eased a restriction imposed in April. Commerce Secretary Howard Lutnick confirmed the move is tied to rare earth export negotiations, where China agreed to loosen controls on seven strategic minerals essential for clean energy and defence industries.

The reversal follows Nvidia CEO Jensen Huang’s meetings with former President Trump and Chinese officials. Nvidia is filing for U.S. export licenses and plans to launch a new export-compliant GPU, the RTX Pro, tailored for China’s industrial AI applications.

Lutnick described the H20 as Nvidia’s “fourth best” chip, reassuring legislators that China won’t receive its most advanced AI technology. The administration views this calibrated access as a way to keep China dependent on U.S. tech infrastructure while safeguarding national security.

Following the policy change, Nvidia shares rose about 4%, and AMD announced its MI308 AI chip license application is also progressing. Analysts suggest the shift may recover $15–20 billion in lost revenue and reinforce American leadership in AI development.