Nvidia’s resumption of H20 chip sales related to rare earth element trade talks

Nvidia recently reversed its June decision to halt sales of its H20 AI chip to China, filing an application to resume these sales. This move is closely linked to ongoing U.S.-China trade discussions concerning rare earth elements (REEs), such as lanthanum and cerium, which are predominantly mined in China and are essential for technologies including electric vehicle batteries. U.S. Commerce Secretary Howard Lutnick indicated that Nvidia’s chip sales resumption is part of broader negotiations around these critical materials, emphasizing that China will not receive Nvidia’s most advanced technology. The decision has sparked controversy, with some U.S. lawmakers, including Congressman Raja Krishnamoorthi, criticizing it as inconsistent with prior export control policies aimed at protecting advanced technology from foreign adversaries. However, Lutnick downplayed these concerns, assuring that the chips sold to China are not among Nvidia’s top-tier products. This development follows rumors that Nvidia was seeking ways to comply with U.S. export regulations while continuing business in China