NVIDIA is making headlines again. After months of export restrictions, the company plans to resume sales of its powerful H20 AI chips to China. This follows assurances from the U.S. government that licenses will be granted. These chips were designed specifically for China after earlier restrictions in 2023. But in April 2025, new export controls halted sales, costing NVIDIA billions in revenue and inventory write-offs.

Now, that pause seems over. The H20 chip ban may be lifted soon, marking a major shift in U.S.-China tech relations. CEO Jensen Huang confirmed the company’s readiness to deliver once approval is official. This could be a massive boost for NVIDIA, especially as it tries to maintain its lead in the global AI race.

Why NVIDIA Still Needs China

China isn’t just another market for NVIDIA — it’s essential. In the last fiscal year, China brought in $17 billion, making up 13% of NVIDIA’s total revenue. Despite rising domestic competition from companies like Huawei, demand for NVIDIA’s chips remains strong. That’s largely due to its unique CUDA computing platform, which Chinese firms still rely on heavily.

Huang has emphasized China’s value repeatedly. During a visit to Beijing, he called it a “massive, dynamic, and highly innovative” market. While the U.S. is tightening chip exports to protect national security, NVIDIA is walking a fine line. The company continues to push for access while following the rules. It’s a balancing act that could decide its long-term success.

NVIDIA Launches New AI Chips Just for China

Even as it works to revive H20 sales, NVIDIA is preparing backup plans. The company recently announced the RTX Pro GPU, a new AI chip tailored for the Chinese market. Unlike the H20, this chip is designed to fully comply with U.S. export rules. It’s built for smart factories, logistics, and other industrial uses. Early reports suggest it will be cheaper and less powerful than the H20, but easier to manufacture.

This move shows NVIDIA’s flexibility. It knows China wants AI chips and it’s ready to deliver—one way or another. The RTX Pro may not replace the H20 entirely, but it helps fill the gap while avoiding more regulatory hurdles.

Jensen Huang’s Strategic Diplomacy

CEO Jensen Huang has been at the center of it all. He met with U.S. President Donald Trump recently and discussed export policies and AI leadership. Then, he flew to Beijing to meet Chinese officials and promote NVIDIA’s vision for AI. His presence in both capitals shows his role as more than just a tech executive — he’s also a key negotiator in the geopolitical tech war.

U.S. lawmakers have warned Huang not to engage with Chinese firms linked to military or intelligence groups. But so far, he’s focused on building safe, secure AI partnerships. He knows the stakes are high. The wrong move could trigger more bans. But if he navigates well, NVIDIA could cement its lead in both markets.

What’s Next for NVIDIA, China, and AI?

The return of H20 sales could spark new growth for NVIDIA in China. However, tensions between Washington and Beijing remain. Even with licenses coming, Chinese firms are hedging their bets. They’re investing in local alternatives to reduce future risk. But for now, NVIDIA remains the AI chip leader in China.

The global tech war is far from over, but this is a win for NVIDIA. It shows how skilled leadership, diplomacy, and smart product planning can keep a company ahead—even in the middle of political crossfire. Jensen Huang is proving that with the right moves, even the toughest barriers can be broken.