Nvidia’s plans to re-engage with the Chinese market via its H20 chips are facing a slow and measured path to recovery, as production setbacks and regulatory uncertainty weigh on short-term expectations.

The head of a House of Representatives panel on China told U.S. Commerce Secretary Howard Lutnick that resuming sales of Nvidia's H20 chips to China threatens to advance Beijing's AI capability, stepping up his criticism of the decision and saying the original ban was "the right call.