Key takeaways
Nvidia’s CEO Jensen Huang recently confirmed that the company is not planning to ship its flagship Blackwell AI chips to China.
“Currently, we are not planning to ship anything to China,” he said, adding that any return would depend on a change in Chinese policy.
The Blackwell chips remain blocked under U.S. export controls, and while the administration is reportedly reviewing whether to permit sales of somewhat less-advanced chips (such as the H200) to China, no firm commitments have emerged.
Recent upswing in stock reflects export-control relief, but uncertainty remains
Shares of Nvidia rose 2.1 % on Thursday, bouncing back after a prior dip, as investors reacted to signs the most stringent chip-export restrictions may not stay in place.
The movement comes amid shifting U.S. policy, which, after months of limits on China's AI chip exports, now appears to be entering a more flexible phase.
Still, even though sales of the previously restricted H20 chip have resumed under license, China’s own regulators are reportedly discouraging local firms from ordering many Nvidia data-centre GPUs.
According to Reuters, companies, including major firms like the parent of ByteDance, have been told to cease testing and orders of certain Nvidia chips, a move that could further block Nvidia’s ability to penetrate China’s marketplace.
China remains a strategic but elusive market for Nvidia
For Nvidia, China remains an important long-term growth market, but short-term realities are stark.
In public remarks, Huang has noted that about half of the world’s AI researchers are based in China, highlighting the potential of the region. Yet for now, he says, “market share of the advanced AI chip market [in China] is zero.”
Despite the challenges, Nvidia continues to design China-compliant chips (such as H20 and a tailored “RTX Pro” GPU), and has lobbied aggressively in Washington for rules that would allow broader exports.
The company seems to be positioning itself for a future eventual return, if and when regulatory and geopolitical conditions permit.
Export controls and geopolitics force a balancing act
The U.S. government’s export restrictions on advanced AI chips aim to limit China’s access to high-end hardware that could accelerate its military or strategic AI capabilities.
In April 2025, Nvidia announced a $5.5 billion inventory charge after restrictions forced it to halt H20 chip deliveries to China.
As Washington mulls whether to allow scaled-down chips such as the H200 to China, Nvidia argues that such restrictions weaken, rather than strengthen, U.S. competitiveness globally.
Huang has warned that denying China access to American AI hardware could accelerate the growth of indigenous Chinese chip ecosystems, ultimately undermining U.S. influence in global AI standards.
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