Nvidia will resume shipping its H20 AI chip to China after receiving approval from US authorities. The decision represents a breakthrough for the business and its significant Chinese consumers, reversing earlier, stricter restrictions. Jensen Huang, the billionaire CEO, verified the CCTV update and said that authorization had been obtained.
Additionally, Hong Kong-listed Alibaba, Tencent, and Baidu all saw 1%–2% increases in value as a result of the news. The US Commerce Department has not yet responded. However, investors and traders are placing bets on a resurgence of AI development in Asia.
Nvidia’s H20 AI Chip Gets Export Green Light
Washington has approved Nvidia to export the H20 AI chip, which was created especially for China by previous Biden-era regulations. Although it was initially supposed to follow the existing curbs, as of April, a special license was required. Additionally, the approval marks a shift in strategy from the Trump administration’s crackdowns.
The announcement caused a significant reaction in the market. The Hang Seng Technology Index increased by 2.2%. Data centers such as Beijing Sinnet saw an increase of more than 8%. Additionally, Nasdaq futures rose. This chip powers machine learning systems in China for customers like ByteDance, DeepSeek, and others.
The biggest AI development companies in China, Alibaba, Tencent, and Baidu, were said to have accumulated units. These businesses are developing essential AI tools in addition to being Nvidia’s biggest clients. Additionally, GPU access is crucial to their extensive cloud and research infrastructure.
Can US Policy Changes Fuel an AI Development Surge?
Jensen Huang views the reversal of the ban as a victory because he previously referred to chip curbs as a policy failure. He thought that restricting access to technology helped to foster Chinese innovation and solidify Huawei’s position as the local leader. Thus, Nvidia avoids a predicted $5.5 billion loss in earnings with this change.
The introduction of DeepSeek in 2025 led to a rise in local AI investment by Chinese tech companies. These initiatives are accelerated by the H20 AI chip’s return. As a result, businesses can develop platforms, train models, and compete with OpenAI. Export clearance offers both immediate relief and long-term potential.
Will the H20 AI Chip Rewrite China’s AI Future?
The US approval helps Chinese tech leaders advance AI goals while strengthening Nvidia’s position. China’s largest internet companies can now grow without US restrictions since access to the H20 AI chip has been restored.
Additionally, the next phase of AI research may start in earnest. As Hong Kong tech stocks gain momentum, investors are keeping a close eye on the situation. Additionally, this clearance may alter future tech diplomacy between the United States and China.
About The Author
