Nvidia is back in China.In a stunning turn of events, the chip maker said it expects to soon be able to sell its H20 AI chip in the country.On Monday, Nvidia said the U.S. government has assured the company it will approve its license applications to sell the H20 to China.

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.

Nvidia's advanced artificial intelligence chips worth at least $1 billion were smuggled to China in the three months after Washington tightened chip export controls, the Financial Times reported on Thursday.