How NVIDIA became a victim of US-China trade war

**How NVIDIA Became a Victim of the US-China Trade War**
*By Dwaipayan Roy | Oct 12, 2025, 05:19 PM*

NVIDIA, a leading American chipmaker, has found itself caught in the crossfire of the ongoing trade war between the US and China. In April 2025, the company’s H20 chip was banned by the Donald Trump administration over national security concerns. Although the chip was designed to comply with previous Joe Biden-era restrictions, US officials fear that these chips could enable Chinese firms to develop military-grade AI technologies.

### Tech Dominance: The H20 Chip and US Strategy

The H20 chip, intentionally less powerful than NVIDIA’s top-tier H100, is part of a broader US strategy to curb China’s advancement in artificial intelligence technology. In July 2025, a partial lifting of the ban allowed NVIDIA to resume selling some chips to China. However, this came with a stipulation: NVIDIA agreed to pay 15% of its revenue from these sales to the US government.

### Retaliation: China Tightens Scrutiny on US Tech Imports

In response to the US’s tech restrictions, China has increased scrutiny on American technology imports, including NVIDIA’s chips. This development highlights the escalating tensions between the two global powers over technology and trade, and it illustrates how companies like NVIDIA are caught in the middle of this fierce competition for technological supremacy.

### Security Concerns: AI Technology at the Heart of US-China Tensions

Artificial intelligence technology remains a central issue in the ongoing US-China trade war. NVIDIA CEO Jensen Huang has cautioned that restricting AI chip sales to China might backfire, potentially motivating Beijing to accelerate the development of its own AI technology. This situation underscores the delicate balance between addressing national security concerns and fostering healthy competition in the global AI landscape.

As the trade war continues, NVIDIA’s experience exemplifies the challenges faced by tech companies navigating the complex intersection of geopolitics, innovation, and market access.
https://www.newsbytesapp.com/news/business/us-china-trade-war-nvidia-s-h20-chip-caught-in-crossfire/story