Nvidia struck a surprising deal after convincing the president that H20 chips aren’t a national security risk. But whether the reversal is good or bad depends on who you ask.

Beijing has urged local companies to avoid using Nvidia Corp.’s H20 processors, particularly for government-related purposes, complicating the chipmaker’s return to China after the Trump administration reversed an effective US ban on such sales.

Nvidia’s H20 AI chip has been at the center of U.S.-China trade negotiations for months. Raffaele Huang and Robbie Whelan explain why China loves and fears Nvidia’s chip. Beijing wants [