Nvidia announced plans to restart sales of its H20 AI chip to China after initially withdrawing from the market. This decision is associated with trade discussions involving rare earth elements critical to technology manufacturing. U.S. officials, including Commerce Secretary Howard Lutnick, have commented on the implications of these sales amid ongoing trade debates with China. Criticism arose from Congressman Raja Krishnamoorthi, who argued this move undermines national security by providing advanced technology to adversaries. Despite concerns, Lutnick stated Nvidia is only offering lower-tier chips to China, indicating careful control over technology exports.
U.S. Commerce Secretary Howard Lutnick stated Nvidia's plans to sell H20 AI chips in China are tied to ongoing trade discussions regarding rare earth elements.
Rare earth elements such as lanthanum and cerium are critical components in technology, including rechargeable batteries for electric vehicles.
Congressman Raja Krishnamoorthi criticized Nvidia's decision to sell to China, claiming it would hand advanced technologies to foreign adversaries and contradict previous export controls.
Lutnick emphasized that Nvidia is selling China their 'fourth best' chip, highlighting that they do not supply their best or second-best technology.
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