Allowing Nvidia’s H20 Sales to China Strengthens U.S. AI Leadership, Says Center for Data Innovation
WASHINGTON—Following the announcement that the U.S. government will allow Nvidia to resume sales of its H20 chip to the Chinese market, the Center for Data Innovation released the following statement from Director Daniel Castro:
“The decision to allow Nvidia to resume sales of its H20 chip to China is a welcome course correction. Nvidia designed this chip specifically to comply with U.S. export controls. Blocking its sale despite that compliance sent the wrong signal to both U.S. companies and global markets.
Restricting U.S. chip exports not only undermines the competitiveness of leading American firms—it also risks ceding market share to foreign rivals like Huawei. That weakens the innovation engine that drives U.S. leadership in AI and semiconductors.
More broadly, overly rigid export controls push Chinese AI firms to adopt alternatives outside the U.S. ecosystem, eroding America’s long-term influence in shaping global AI standards and practices.
The Trump administration should stay focused on policies that preserve U.S. national security while also ensuring American companies can compete in global markets and continue reinvesting in the R&D that keeps the United States at the forefront of AI innovation.”
Contact: Nicole Hinojosa, [email protected]
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The Information Technology and Innovation Foundation (ITIF) is an independent, nonprofit, nonpartisan research and educational institute focusing on the intersection of technological innovation and public policy. Recognized by its peers in the think tank community as the global center of excellence for science and technology policy, ITIF’s mission is to formulate and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress.
