Nvidia said in April that sales restrictions on its chip in China on national security grounds would cost the company $5.5 billion. The White House also blocked a chip from Advanced Micro Devices. Both companies say the Commerce Department is now moving forward with license applications to export them to China.

The administration’s move marks a turnabout after the Commerce Department restricted sales of the chip in April, costing Nvidia billions of dollars. The news came during a visit by Huang to Beijing, where he was meeting senior officials.

U.S. President Donald Trump ratchet up tariffs on Chinese imports to a prohibitive level of 145%, spurring a round of stimulus measures from Beijing.

China’s economy slowed in the second quarter even as it topped market forecast in a show of resilience against U.S. tariffs, and analysts warn of underlying weakness and rising risks that will ramp up pressure on Beijing to roll out more stimulus.

The world's second largest economy grew by 5.2% in the three months to the end of June, official figures show.