The Trump administration is considering increasing restrictions on Nvidia H20 chip sales to China, Nvidia: Fearful of stimulating chip development in China

The team of (Donald Trump), the President of the United States, is discussing further restrictions on the H20 chips designed specifically for the Chinese market by (Nvidia). The discussion is still in the preliminary stage, and no specific decisions have been made. However, after the news came out, Nvidia's stock price fell by 6.9%, causing concern in the market.

The United States plans to expand its control, and H20 may become a new target

According to Bloomberg, the Trump administration is considering whether to include Nvidia's H20 chip in the regulatory scope. Originally, the H20 was a downgraded AI chip designed by Nvidia specifically for the Chinese market to comply with US export control standards.

Starting in 2022, the US government began restricting the export of Nvidia's AI chips to China. Initially, Nvidia was required to apply for an export license for high-performance chips such as H100 and A100, so Nvidia launched the lower-performance H800 to comply with regulations. However, the Biden (Joe Biden) administration increased restrictions in 2023, and the H800 was also included in the export ban, so Nvidia developed the lower-performance version, H20. The Trump team is reevaluating whether H20 should also be further regulated.

The United States is concerned that China's AI development is exceeding expectations and the technological competition is fierce.

The Trump administration's move is related to the rapid development of China's AI. Recently, Chinese startup DeepSeek released an AI model that claims to be comparable to OpenAI and Google.