How the US-China trade war is impacting NVIDIA
NVIDIA, a major US chipmaker, is right in the middle of the ongoing trade battle between the US and China.
Their H20 chip—built to meet strict US export rules for China—was banned by the Trump administration back in April 2025 over national security worries.
Even though it was designed to follow earlier Biden-era controls, US officials have expressed concerns that these chips could help Chinese companies with military-focused AI.
The bigger picture: AI tech supremacy
This isn't just about business—it's about who leads in AI tech.
The H20 chip is intentionally less powerful (just 15% of NVIDIA's top-tier H100) so China can't get ahead in AI.
After a partial ban lift in July 2025, NVIDIA can sell some chips to China but must give 15% of that revenue to the US government as part of a deal.
Meanwhile, China has tightened checks on American tech imports like these chips.
All this means global innovation—and who sets the rules for future tech—is up for grabs, with companies like NVIDIA caught right in the crossfire.