The Trump administration's approval for H20 chip sales to China comes amid rising tensions over rare earth magnets, vital for various industries. U.S. legislators oppose this move, fearing it could undermine American AI leadership. Nvidia claims keeping Chinese interest is crucial to thwarting competitors like Huawei. Prior to the April ban, China’s tech giants increased H20 orders significantly, with Nvidia facing $5.5 billion in inventory losses and $15 billion in lost sales, according to CEO Jensen Huang.