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Nvidia to Pay U.S. 15% of China H20 Sales for Export Approval

Bloomberg warns the 15 percent remittance resembles an unconstitutional export tax, potentially intensifying China’s security objections to the performance-reduced H20 processor.

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Overview

  • Nvidia has agreed to remit 15 percent of its China sales from the performance-reduced H20 AI chip to the U.S. Treasury for permission to resume exports.
  • Reports indicate that AMD faces identical 15 percent sales remittance requirements to secure H20 export approval to China.
  • Nvidia says it has not shipped the H20 to China in recent months and views the remittance plan as a means to restore its competitive market access.
  • Bloomberg cautions that the levy could breach constitutional limits on export taxation and might provoke legal challenges.
  • Chinese regulators have flagged location-tracking and other security features in the H20, warning that the arrangement could heighten U.S.-China technology tensions.