The US Commerce Secretary Lutnick announced that export controls on Nvidia's H20 AI chips to China will be lifted once China supplies rare earth magnets to the US. This decision, supported by former President Trump, aims to allow China to purchase H20 chips in a balanced manner. Despite this, Jefferies reported that Nvidia's H20 stockpile will not meet the accelerating demand from China. White House Senior Adviser Hassett emphasized the US government's desire for China to continue buying Nvidia chips, while cautioning against China becoming the AI standard for chips. However, the Cyberspace Administration of China (CAC) has launched an investigation into Nvidia's H20 chips over alleged security concerns, including claims that the chips contain location tracking and remote shutdown capabilities. The Chinese government has summoned Nvidia to address these issues, though official responses have deferred to relevant Chinese authorities. The scrutiny reflects growing tensions over technology security and trade between the US and China, with Nvidia's position in the Chinese market under pressure amid these developments.