Nvidia, AMD Resume China AI Chip Sales Amid Critical Rare-Earth Trade Talks

Nvidia and AMD are reportedly resuming sales of their advanced AI chips to China, a significant policy shift directly linked to ongoing U.S.-China negotiations over rare-earth elements. U.S. Commerce Secretary Howard Lutnick confirmed on Tuesday that Nvidia is filing an application to restart H20 AI chip sales to China, with AMD also planning to reintroduce its MI308 AI chip to the market.

This development follows Nvidia’s earlier intention in June to essentially withdraw from the Chinese market. Rare-earth elements, predominantly sourced from China, are vital for various high-tech components, including electric vehicle batteries, and have become a central point in current trade disputes between the two nations.

While the move signals a potential de-escalation in tech trade tensions, it has drawn criticism from some U.S. lawmakers. Congressman Raja Krishnamoorthi expressed concern that the decision could provide advanced technologies to foreign adversaries. However, Secretary Lutnick downplayed these fears, stating that China would only receive Nvidia’s “fourth best” chip, underscoring that the U.S. is not exporting its most cutting-edge technology.

The resumption comes shortly after rumors surfaced of Nvidia designing new chips specifically for the Chinese market to navigate U.S. export controls. The broader landscape of U.S. AI chip export regulations remains in flux, especially after the Trump administration rescinded the Biden administration’s AI Diffusion Rule in May. Concerns about smuggling have also led to countries like Malaysia implementing new trade permits for U.S.-made AI chips just this week.

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