China reportedly urged domestic companies to avoid using Nvidia (NVDA) H20 processors, especially for government work, after Nvidia and AMD (AMD) agreed to pay the US 15% of the revenue for certain chip sales to China.

A Fragile Foothold in China Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) recently secured U.S. approval to resume sales of their lower-end AI chips, the H20 and MI308, respectively, to China,

Nvidia and AMD have agreed to pay the US government 15% of their revenues from semiconductor sales to China in exchange for export licenses, an unprecedented quid pro quo arrangement aimed at solidifying America’s AI business dominance while maintaining trade ties with China.