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The abrupt easing of American restrictions on the NVIDIA H20 chip earlier this week is now evincing an entire spectrum of reactions from Washington's policy-making circles, with the Chairman of a CCP-focused House Committee vowing to seek additional clarifications, while the White House AI and Crypto czar defends the move.
For the benefit of those who might not be aware, the Trump administration had imposed stringent export licensing requirements on NVIDIA's China-focused H20 chips back in April 2025, prompting the GPU manufacturer to write off its inventory worth billions of dollars.
Additionally, NVIDIA completely wrote off its China-origin TAM following the imposition of US licensing requirements on its H20 GPUs, vowing to treat any residual sales in China as an undiscounted windfall instead of a solid figure baked into its guidance.
Yet, after weeks of public exhortations by its CEO Jensen Huang, where he emphatically argued in favor of re-deploying the American technology stack in China, NVIDIA published a blog post on Monday, announcing the imminent filing of an application with the US government to resume the sale of its China-specific H20 GPUs.
NVIDIA notably claimed that it has received assurances from US officials that it will receive the requisite authorizations promptly, allowing it to resume H20 shipments to China.
— Select Committee on the Chinese Communist Party (@committeeonccp) July 17, 2025
This brings us to the crux of the matter. The Chairman of the House Select Committee on the Chinese Communist Party, John Moolenar, has now publicly vowed to seek additional clarifications from the US Commerce Department on the supposed removal of the de facto ban on the sale of NVIDIA H20 chips in China. Moolenar went on to note:
"The H20 is a powerful chip that, according to our bipartisan investigation, played a significant role in the rise of PRC AI companies like DeepSeek. It is crucial that the US maintain its lead and keep advanced AI out of the hands of the CCP."
Meanwhile, David Sacks, the White House AI and Crypto czar, recently hinted that the H20 reprieve was part of a broader give-and-take within the context of the ongoing trade negotiations between the US and China.
Sacks believes NVIDIA's H20 chips can act as a bulwark against Huawei, which has accelerated its home-made AI silicon efforts via the Ascend 910C GPUs, which combine two older 910B chips to reportedly deliver 800 TFLOP/s of computing power at FP16, replete with a memory bandwidth of up to 3.2 TB/s. The chip is considered on par with NVIDIA's H100 GPU.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025.
As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover.
When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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