Nvidia is facing a significant challenge as the White House imposes new export restrictions on its H20 GPU in China. These restrictions seem to build on the previous administration’s policies aimed at limiting access to advanced AI chips.
On January 15, 2025, the US Bureau of Industry and Security laid out new controls under the Framework for Artificial Intelligence Diffusion. This regulation only allows exports and transfers of certain advanced semiconductors to specific destinations and users. The intent? To limit the chances of both state and non-state actors gaining access to critical AI models.
Ned Finkle, Nvidia’s vice president for government affairs, didn’t hold back in his criticism. He called the Biden Administration’s late-term policy a damaging move for America’s leadership in tech, saying it was rolled out without proper discussion. He felt the new regulatory framework stifles competition and risks America’s technological edge without actually enhancing national security.
These export rules kick in on April 15, and it appears that the Trump administration isn’t backtracking on them. Nvidia has been told it will need a special license to ship the H20 chip to China, as reported by BBC.
During Nvidia’s Q4 2025 earnings call, CFO Colette Kress pointed out that despite its ongoing compliance, sales in China have plummeted since export controls started. The Chinese datacentre market remains tough, and she believes they’ll stay around their current levels if regulations don’t change.
The H20 is designed for the Chinese market and, according to Antonia Hmaidi from the Mercator Institute for China Studies, Nvidia sold about a million units to Chinese customers in 2024. In contrast, Huawei’s homegrown Ascend chip shipped only 200,000 units that same year, showcasing difficulties within China’s semiconductor scene. Also, Hmaidi noted that Huawei’s software isn’t as appealing as Nvidia’s, which makes developers hesitant to adopt the Ascend chip for training.
Interestingly, just a day before the export changes, the Trump administration touted Nvidia as a key player in an “American-made chips boom.” The company plans to invest up to $500 billion in AI infrastructure across the US with big partnerships like TSMC and Foxconn. They’ve already started making their Blackwell chips in Phoenix and are building supercomputer manufacturing facilities in Texas, with production expected to ramp up in the next year.