Commerce Secretary Lutnick: China Restricted to Nvidia’s “Fourth-Tier” AI Chips Under Revised U.S. Policy

In a significant pivot on U.S. technology export policy, Commerce Secretary Howard Lutnick explained the Trump administration’s decision to allow Nvidia to resume sales of AI chips to China — but only its “fourth best” model. Speaking at the Pennsylvania Energy And Innovation Summit, Lutnick emphasized a calculated strategy: by permitting Chinese companies access to less advanced chips, the U.S. aims both to maintain a technological edge and ensure ongoing Chinese reliance on American hardware, preventing the rapid rise of domestic alternatives. The policy reversal, following a recent meeting between President Donald Trump and Nvidia CEO Jensen Huang, opens the door for renewed H20 chip sales, a win for Nvidia after previous restrictions halted billions in exports. Lutnick detailed that the chips sold to China are several generations behind U.S.-available models, and the move is closely tied to American interests in both commerce and technological leverage amid ongoing trade frictions.

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