The Trump administration’s decision allowing Nvidia Corp. to resume shipments of its H20 artificial intelligence chips to China risks bolstering Beijing’s military capabilities and expanding its capacity to compete with the US in AI,

The Silicon Valley chip giant said the Trump administration, which had shut down its sales to China three months ago, had assured it that licenses for the sales would now be granted.

Nvidia CEO Jensen Huang says export controls on advanced chips require companies to adapt. Speaking in Beijing on Wednesday, he addressed the recent lifting of a U.S. ban on Nvidia's H20 chip sales to China.