The U.S. decision to allow Nvidia to ship its H20 AI chips to China is aimed at preventing China from advancing too quickly in developing its own semiconductor technology, according to White House economic adviser Kevin Hassett.
Speaking to Fox News, Hassett said President Donald Trump and his team agreed to permit the shipments to help the U.S. maintain its lead in artificial intelligence chip development. He said the concern was that blocking chip sales could push China to speed up efforts to build its own advanced chips.
Nvidia recently said it had applied for U.S. government licenses to resume sales of its H20 graphics processing units to China and had received assurances that the licenses would be granted soon.
The H20 chips are the most advanced products Nvidia can legally sell in China. These chips have less computing power than versions sold in other markets due to restrictions imposed during the Trump administration and continued under President Joe Biden.
Hassett said that allowing these exports is part of a broader strategy to manage competition in advanced technology and ensure the U.S. remains ahead in the global chip race.
