Nvidia’s resumption of H20 chip sales related to rare-earth element trade talks

Rare-earth elements seem to be behind the NVEDIA position about China.

Following the announcement after the announcement in June Withdraw from the Chinese marketSemiconductor Chip and AI Giant Reversed Course and say that it is filing an application Restart sales of H20 AI Chip in ChinaThe

US Commerce Secretary Howard Lutnik said on Tuesday that Nvidia’s plan to start selling H20 AI chips is involved in the ongoing trade discussion with China about rare-earth components, According to the Reuters reportThe AMD has planned to restart the sales of his MI 308 AI chip In China too.

Rare-earth components (REEs), such as Lanthanam and Serium, which are mainly excavated in China, are the essential ingredients in technology, including rechargeable batteries for electric vehicles. These res have become an important issue of current trade debates between the United States and China.

Although not everyone is happy with the development of this trade.

This decision will not only transfer our most advanced technology to our foreign opponents, but is also dangerously inconsistent with the position described by this administration on the control of export for China, “Congress member King Krishnamuruthi said in a statement.

However Lutnik is not anxious and told CNBC on Tuesday that China is just getting Nvidier “fourth best” chipThe

Lutnik said in the interview “We do not sell them the best things, not our second best thing, not even our third best.”

This news comes less than a week after a week of rumors that will be Nvidia Especially to design and reveal a new AI chip for the Chinese market To resume business in the country without violating US chip export rules.

America is still trying to determine what its AI chip export rules look like. Trump administration Formally withdraws the AI spread rule of the Biden administration There has been no formal update in May and since then.

Trump was in administration Rumors to consider further restrictions on AI Chip exports to countries like Thailand and MalaysiaBloomberg reported last week to prevent smuggling. Malaysia Trade Permits implemented on AI Chips in the USA Monday

TechCrunch reached Nvidia for comment.