**China Blocks Nvidia H20 Chips, Trade Truce Extended**

What’s Happening?

China has advised its firms to avoid using Nvidia’s H20 processors, adding a new layer of complexity to the US-China tech trade tensions. This comes as Nvidia agreed to share 15% of its H20-related revenues with the US government, aiming to regain lost revenues in the Chinese market. Meanwhile, the US extended a 90-day trade truce with China, but the lasting impact remains uncertain.

Where Is It Happening?

The developments are primarily focusing on China, the United States, and its global implications affecting the semiconductor industry.

When Did It Take Place?

The guidance from Beijing was issued recently, coinciding with the extension of the US-China trade truce by President Trump.

How Is It Unfolding?

– China has urged local companies to bypass Nvidia’s H20 processors.
– Nvidia agreed to give the US government a 15% cut of its H20-related revenue.
– The US extended its 90-day tariff truce with China.
– EU leaders and Ukrainian President Volodymyr Zelenskiy are planning a call with US President Donald Trump.

Quick Breakdown

– **China’s Stance:** Advising firms to avoid US-origin H20 chips, prioritizing domestic and other foreign alternatives.
– **Nvidia’s Deal:** Agreed to share profits with the US, seeking to re-enter the Chinese market.
– **Trade Truce:** Extended for 90 days, keeping existing tariff levels unchanged.
– **Geopolitical Meetings:** Upcoming discussions between the US, EU, and Ukraine.

Key Takeaways

This latest development highlights the ongoing US-China trade tensions, with technology and semiconductors at the center. China’s rejection of Nvidia’s chips demonstrates its push for self-sufficiency, while Nvidia’s profit-sharing deal with the US shows its determination to regain market share. The extended trade truce provides temporary relief but doesn’t resolve long-term issues. For businesses, this means further uncertainty and potential shifts in supply chains.

“The new era of tech wars requires innovative diplomacy—not just financial victories but strategic alliances.”
–Laura Chen, Tech Policy Analyst

Final Thought

The clash between international trade policies and corporate strategies underscores the delicate balance in global economics. Companies like Nvidia are caught in a tug-of-war, while governments navigate between protectionism and collaboration. For now, the extensions and negotiations offer breathing room, but long-term solutions will require a change in the game.

Source & Credit: https://www.bloomberg.com/news/videos/2025-08-12/the-pulse-8-12-2025-video