Nvidia's China chip sales in the crosshairs of US export controls
Washington, Monday, 25 August 2025.
Nvidia finds itself at the center of escalating US-China trade tensions. Stringent US export controls on advanced semiconductors significantly curtail Nvidia’s chip sales to China, impacting AI and data centers. China’s domestic chip efforts have not yet closed the gap, leaving reliance on foreign suppliers. Nvidia CEO revealed they are working with the Trump administration on a new computer chip designed for sale to China. Nvidia believes it can eventually make $50 billion from artificial intelligence chip sales in China.
US restrictions and nvidia’s response
The US government’s measures began in 2020, when the Trump administration tightened restrictions to prevent Huawei from accessing chip technology [1]. President Biden continued these policies after taking office in 2021, further increasing export controls [1]. After initial restrictions in 2022 that blocked chips like Nvidia’s H100, Nvidia designed a new chip to comply with regulations [1]. In April 2025, the Trump administration stopped the sale of H20 and other advanced chips to China [1]. Nvidia estimated these export limitations could cost the company $8 billion in potential sales from May to July [1].
Political pushback and nvidia’s strategy
Amid these restrictions, Nvidia is developing a new AI chip for the Chinese market, known as B30A, based on the Blackwell architecture, with performance exceeding the H20 [7]. Some US politicians are pushing for stricter export controls. Democratic lawmakers introduced a bill requiring congressional approval for chip sales to China, fearing that even reduced-spec chips could threaten US technological leadership [3][6]. Republican representative John Moolenaar expressed concerns over Nvidia’s H20 chip exports, emphasizing the need to protect America’s AI lead [3][6].
Financial implications and market dynamics
Nvidia and AMD agreed to share 15% of their chip sales revenue to China with the US government [1]. One article stated Nvidia must pay 15% of its sales in China to the US, which made the US earn $2 billion [7]. Nvidia believes it can eventually make $50 billion from artificial intelligence chip sales in China [1]. Analysts suggest the export restrictions could significantly affect Nvidia’s revenue [7]. An analyst stated the situation is fluid, and the impact on Nvidia’s quarterly earnings is a major concern [7].