The Commerce Department allows Nvidia to sell H20 AI chips to China despite security concerns, and experts are divided on the U.S. technological advantage.

China's Commerce Minister Wang Wentao told Nvidia CEO Jensen Huang on Thursday that he hoped multinational companies, including Nvidia, would provide high-quality and reliable products and services to Chinese customers,

Nvidia plans to resume sales of its AI chip H20 to China, having received U.S. government approval. This move has sparked concerns among U.S. legislators, fearing that the technology could enhance China's military and censorship capabilities.

The U.S. House Select Committee on China has expressed concerns about the Trump administration's decision to allow Nvidia ( NASDAQ: NVDA) to resume shipments of its H20 AI chips to China.

At the Beijing Expo, Jensen Huang also announced plans for a new chip for Chinese clients that is designed for robotics and smart factories.

Nvidia plans to increase the supply of its H20 chips to China, aiming to strengthen its position in the lucrative Chinese technology market. This move follows the lifting of an export ban and comes as Nvidia navigates US-China trade tensions.

Nvidia stock hits record highs as U.S. export licenses unlock access to China’s $50B AI market. Click here to read an analysis of NVDA stock now.

Data center operators in China, which use Nvidia’s H20 chips to crunch data for various AI services, have been struggling to find a local alternative that is as good as the U.S. company’s chips.