U.S. greenlighted H20 chips export on its own initiative, China says

Beijing clarifies its deal with Washington didn't include NVIDIA’s 4th-best AI chip, disputing widely-reported comments by U.S. Commerce Secretary Howard Lutnick

The U.S. greenlighted NVIDIA’s China-specific Artificial Intelligence chip, known as the H20, for export to China on its own initiative, China said on Friday.

In a statement dedicated to the recent U.S. approval of the semiconductor giant’s 4th-best Artificial Intelligence chip, China’s Ministry of Commerce said on its website that in early July, the U.S. had already lifted restrictions on China under the agreement reached between the two countries in London.

“We have taken note that Washington has now taken the initiative to announce it will authorize sales of NVIDIA’s H20 chips to China,” the trade ministry added.

Beijing’s clarification stands in stark contrast to widely reported public comments earlier this week by U.S. Commerce Secretary Howard Lutnick, who told Reuters on Tuesday that "We put that in the trade deal with the magnets," referring to the agreement made to restart Chinese rare earth shipments to U.S. manufacturers. He did not provide additional details, according to Reuters.

Nvidia's H20 was designed to be technologically inferior. The company also sells three other chips that far surpass the H20's power.

Commerce Secretary Howard Lutnick echoed Nvidia CEO Jensen Huang's view of why a US company should sell chips to China. Andrew Harnik/Getty Images

On Monday, July 14, the Silicon Valley company announced in a blog post that the U.S. government had approved the sale of the H20, three months after the Donald Trump administration shut down Nvidia’s artificial intelligence chip sales to China, after CEO Jensen Huang met President Trump in Washington D.C., and before he departed for Beijing.

Huang dominates Chinese headlines this week with his speech at an industry conference and public events with Chinese AI leaders. He visited China’s Ministry of Commerce and was received by Wang Wentao, the minister, on Thursday.

商务部新闻发言人就美批准对华销售英伟达H20芯片有关情况答记者问

MOFCOM Spokesperson Responds to Questions on the U.S. Approval of NVIDIA H20 Chip Sales to China

2025-07-18 13:43

Question:

U.S. officials have recently stated that Washington’s decision to approve sales of NVIDIA’s H20 chips to China is part of China-U.S. economic and trade negotiations. They also claimed that Chinese firms, including Huawei, are already producing equivalent chips domestically and that the United States does not want China to achieve full import substitution. How does the Ministry of Commerce (MOFCOM) view this?

Answer:

Following the China-U.S. economic and trade consultations in London, the two sides have maintained close communication, finalized the “London framework,” and moved forward with implementation. China, in accordance with its laws and regulations, approves export applications for controlled items that meet the necessary criteria. In early July, the United States reciprocally lifted the restrictions on China that had been discussed during those talks.

We have taken note that Washington has now taken the initiative to announce it will authorize sales of NVIDIA’s H20 chips to China. Beijing believes the United States should abandon a zero-sum mentality and continue to roll back a range of unwarranted trade and technology restrictions on China.

Cooperation and mutual benefit are the only viable path; suppression and containment lead nowhere. In May, the United States issued new export-control guidelines targeting Huawei’s Ascend chips, tightening restrictions on Chinese semiconductor products under unfounded pretexts. By wielding administrative power to distort fair market competition, these measures severely undermine the legitimate rights and interests of Chinese companies. China has made its position clear and firmly opposes such actions.

We look forward to the United States working with China in a spirit of equality to correct these erroneous practices, foster a sound environment for mutually beneficial cooperation between the two countries’ enterprises, and jointly safeguard the stability of global semiconductor supply chains.