# Nvidia's AI Chip Sales in China Under Scrutiny Amid US-China Tensions China considers relaxing import controls on Nvidia chips for AI development. - **Source:** [Ars Technica - All content](https://brifing.si/source/b728770c-8dda-457a-8986-84879c9fc42c) - **Published:** 2026-09-28 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/2332c116-b809-4947-b648-e15f72b9801d ## US-China AI Regulation Stalemate The recent Trump-Xi summit made no progress on AI export controls, with both sides unwilling to concede. A fragile trade truce was extended by two months, but impending US controls could disrupt it. Analysts warn China may retaliate by restricting rare earth exports, escalating trade tensions further. ## Nvidia's Potential Breakthrough Despite the stalemate, Nvidia may gain significant ground in China. Chinese authorities are considering allowing major AI firms like Alibaba and ByteDance to import millions of Nvidia's banned chips. This could provide a substantial boost to Nvidia's sales in the region over the next year. ## Gaming Chips for AI Servers China's Ministry of Industry and Information Technology has asked firms to detail plans for using Nvidia's RTX Pro 5500 gaming chips. While designed for gaming, these chips could be repurposed for servers to power China's high-demand AI models, circumventing current restrictions. ## Strategic Importance of AI Chips AI chips are a critical component in the US-China tech rivalry. Nvidia's dominance in this space makes its products a focal point in trade negotiations. China's potential relaxation of import controls reflects its urgency to advance domestic AI capabilities despite US sanctions. ## Alibaba and ByteDance's Role China's tech giants Alibaba and ByteDance have been asked to outline their Nvidia chip procurement plans. Their involvement highlights the government's strategy to leverage private sector resources for national AI development, blurring lines between commercial and state interests. ## Looming US Export Controls The US is expected to impose stricter controls on AI chip exports soon, which could nullify the current trade truce. These measures aim to curb China's AI advancements but may accelerate China's push for self-sufficiency, reshaping global tech supply chains. ## China's Rare Earth Leverage Analysts suggest China could retaliate against US chip controls by restricting rare earth exports, vital for electronics manufacturing. This move would mirror past trade war tactics, underscoring the interconnected nature of global tech and resource markets. ## Implications for Global AI Race The Nvidia chip dilemma exemplifies the broader US-China tech competition. China's potential import relaxation could temporarily boost its AI capabilities, but long-term solutions may require domestic chip innovation, altering the dynamics of the global AI race. ## Sources covering this story - https://arstechnica.com/tech-policy/2026/09/nvidia-may-sell-more-chips-in-china-as-jensen-huangs-influence-over-trump-grows/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._