Mirror Review
July 15, 2025
Summary:
- NVIDIA has received assurance from the U.S. government that licenses will be granted to resume selling its H20 GPUs to China.
- This development follows meetings between NVIDIA CEO Jensen Huang, U.S. President Trump, and various officials in Beijing, where he promoted the worldwide benefits of AI.
- Alongside this, NVIDIA also announced a new, fully compliant RTX PRO GPU specifically designed for commercial uses like smart factories and logistics.
Why would the U.S. government appear to soften its stance on a critical technology export to China?
Following high-level meetings in Washington D.C. and Beijing, the U.S. government has given NVIDIA the green light to resume its H20 AI chip sales to the crucial Chinese market.
This isn’t a simple reversal, though. It’s better understood as a well-thought-out adjustment, based on economic needs, strategic realities, and the limits of export bans.
NVIDIA’s H20 AI Chip Sales Decision Explained
The choice to resume H20 sales comes from balancing national security with economic facts. Here are ten reasons that likely played a part in this shift.
1. Severe Economic Pressure on a US Leader
The initial sales ban hit NVIDIA hard financially. CEO Jensen Huang has been vocal about losing billions of dollars and how important the Chinese market is to his company’s growth.
It’s likely the U.S. government saw that holding back America’s biggest company by market value was counterproductive.
2. Preventing the Rise of Local Competitors
NVIDIA argued that by blocking its sales, the U.S. was actually helping Chinese competitors like Huawei.
The logic is simple: if U.S. companies can’t sell their products, China will just speed up building its own, making the American restrictions less effective in the long run.
3. The H20 is a “Compliant” Downgraded Chip
It’s important to know that H20 is not NVIDIA’s most powerful chip. It was designed to be less powerful so it would fall below the elite chips (like the H100) and the U.S. export thresholds.
Therefore, officials may have looked at this “compliant” chip and decided that banning it didn’t provide enough of a security advantage to be worth the economic damage.
4. Focusing on the Most Advanced Technology
The main goal for the U.S. is to keep China from getting the most advanced AI chips for military modernization.
The strategy seems to be shifting to focus the ban only on those absolute top-tier chips, while allowing sales of less powerful ones like the H20.
This allows companies like NVIDIA to keep a presence in the market with less powerful chips like the H20.
5. The Reality of Grey Markets
Despite official bans, reports indicate that advanced chips have continued to find their way into China through unofficial channels like smuggling.
If the chips are getting in anyway, a strict ban on official sales mainly hurts legitimate U.S. businesses without fully stopping the flow of technology.
6. Avoiding a Push for Chinese Self-Sufficiency
Totally banning U.S. tech gives China more reason to push for its own self-sufficient technology industry.
Allowing some sales keeps China linked to the American tech world, which could slow down its drive to become completely independent
7. Avoiding a Complete “Tech Separation”
A complete technological “decoupling” from China could have widespread and unpredictable consequences.
Allowing some trade in less sensitive tech, like the H20 chip, is a way to maintain a relationship and some influence, rather than pushing China into a corner.
8. Supporting Widespread Commercial Use
NVIDIA points out that its chips are used for many non-military purposes, like smart factories, logistics, and open-source AI development.
As CEO Jensen Huang says, “General-purpose, open-source research and foundation models are the backbone of AI innovation.”
The U.S. is likely willing to allow these commercial sales while watching for any military use.
9. The Power of Direct Corporate Engagement
This news followed a meeting between NVIDIA’s CEO and President Donald Trump. While national security is a constant concern, the specific approach can change.
Direct talks with industry leaders can lead to policy adjustments that take broad economic impacts into account.
10. It’s an Adjustment, Not a Retreat
This decision is a fine-tuning of U.S. policy, not a complete reversal.
The main goal—to stop China from getting tech that could boost its military—is still the same. The government is simply adjusting its tactics based on what’s effective and what the consequences are.
What’s Next in this Balancing Act
This NVIDIA News proves that the path forward is a delicate balancing act indeed.
The U.S. government remains focused on its national security objectives, but it’s also being practical about economic needs and the adaptive strategies of the tech industry.
The new RTX PRO chip, designed just for commercial use, is a perfect example of this strategy: block what’s critical, but allow business where it’s safe.
This change in the H20 AI chip sales policy shows an evolving strategy, one that aims to keep America in the lead without giving up the game.
