By Nicholas Hatcher

Commerce Secretary Howard Lutnick explained the Trump administration's turnabout in assuring Nvidia that it can sell its H20 artificial-intelligence chip in China, saying the U.S. wants them dependent on American technology.

Lutnick said on CNBC Tuesday that the U.S. wants to stay one step ahead of what China can build so they will keep buying U.S. semiconductors. "We want to keep having the Chinese using the American technology stack, because they still rely upon it," he said, adding that Nvidia is selling China an older AI chip.

The administration said Nvidia would be allowed to sell the H20 chip after licenses are granted by the Commerce Department, marking a reversal from April when the department restricted sales of the chip.

The U.S. chip company last week became the first company valued at more than $4 trillion. Nvidia shares rose 4% in midday trading Tuesday.

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July 15, 2025 12:42 ET (16:42 GMT)

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