US technology giant Nvidia says it will soon resume selling high-end artificial intelligence (AI) chips to China.
The US government has assured the company that it will grant its licenses necessary to resume exports to the world's second-largest economy, the company said in a blog post.
The move reverses the ban on Nvidia's H20 chips on sale to Beijing. This was imposed in April by the US President Donald Trump administration over concerns that Chinese military could use it.
Chip has been a key focus in export controls aimed at protecting cutting-edge technology from Beijing's hands as AI races between the US and China heat up.
The US Department of Commerce did not immediately respond to a request for comment from the BBC.
The H20 chip was developed specifically for the Chinese market after US export restrictions were imposed by the Biden administration in 2023. Its sales were effectively banned by the Trump administration in April this year.
The announcement comes as trade tensions between Beijing and Washington have eased.
In May, the two governments agreed to a temporary ceasefire in the tariff war.
They set an August 12 deadline to reach a long-term deal over the high tariffs imposed on each other since Trump returned to the White House this year.
In recent weeks, Beijing eased trade controls on rare earth exports, but the US has lifted restrictions on chip design software companies operating in China.
Nvidia has long viewed China as an important market. This is the country ranks among the top buyers worldwide.
Nvidia CEO Jensen Huang has spent several months on both sides to resume sales of H20 chips in China.
The company said Huang, who is now in China, will meet Trump to create jobs and reaffirm Nvidia's commitment to the US leading AI around the world.
Huang also met with Chinese government and industry officials to discuss how AI can increase productivity and how to safely proceed with research.
