House CCP Committee Chair: NVIDIA’s H20 Chip as a “Powerful Asset” in Boosting PRC AI Firms Such as DeepSeek

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Recent Policy Shifts Surrounding NVIDIA’s H20 Chip

The recent easing of restrictions on the NVIDIA H20 chip by U. S.authorities has sparked diverse responses in Washington’s policymaking circles. Notably, the Chairman of a committee focused on the Chinese Communist Party (CCP) has committed to seeking further clarifications regarding this decision, while the White House’s AI and Crypto advisor is defending the action.

Background on Export Restrictions

To provide context, the Trump administration instituted stringent export licensing requirements for NVIDIA’s H20 chips intended for the Chinese market back in April 2025. This move resulted in NVIDIA reporting significant inventory losses amounting to billions of dollars.

In the wake of these U. S.licensing limitations, NVIDIA entirely disregarded its total addressable market (TAM) in China for its H20 GPUs, labeling any remaining sales there as unexpected profits rather than a concrete revenue figure that could be safely predicted.

NVIDIA’s Strategic Shift and Application for Resumed Sales

Following weeks of advocacy from its CEO, Jensen Huang, who argued for a re-engagement of American technology with Chinese markets, NVIDIA announced via a blog post on Monday that it is preparing to submit a request to the U. S.government to recommence the sale of its H20 GPUs specifically designed for China.

Furthermore, NVIDIA asserts that it has received positive signals from U. S.officials indicating that the necessary authorizations will be granted soon, paving the way for the resumption of H20 shipments to China.

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— Select Committee on the Chinese Communist Party (@committeeonccp) July 17, 2025

Committee Reactions and National Security Concerns

The situation has prompted John Moolenar, Chairman of the House Select Committee on the CCP, to formally demand further clarifications from the U. S.Commerce Department regarding the effective lifting of the ban on NVIDIA’s H20 chip sales to China. Moolenar made a significant statement, emphasizing the implications of the H20 chip:

“The H20 is a powerful chip that, according to our bipartisan investigation, played a significant role in the rise of PRC AI companies like DeepSeek. It is crucial that the US maintain its lead and keep advanced AI out of the hands of the CCP.”

Market Dynamics and Future Prospects

In the midst of these developments, David Sacks, the White House AI and Crypto czar, suggested that the leniency regarding the H20 chips may be part of a broader negotiation context between the U. S.and China concerning trade. Sacks posits that NVIDIA’s H20 chips could serve as a counterbalance to Huawei’s advancements in AI technology, particularly as Huawei scales up its in-house silicon production with the Ascend 910C GPUs. These chips reportedly offer a formidable computing capacity of 800 TFLOP/s at FP16, comparable to NVIDIA’s H100 GPU, while boasting a memory bandwidth of up to 3.2 TB/s.

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