AsianFin -- David Sacks, the White House’s top advisor on artificial intelligence and crypto policy, said Tuesday that the U.S. government’s move to allow Nvidia to resume chip sales in China is aimed squarely at curbing Huawei’s dominance in the domestic AI market.

“There’s a compelling case here — you don’t want to hand Huawei the entire Chinese market when Nvidia can still compete for a significant share of it, even with a deprecated, less capable chip,” Sacks said in an interview with Bloomberg’s Ed Ludlow.

His remarks came a day after Nvidia said in a blog post that it is “filing applications to sell the NVIDIA H20 GPU again” in China. The H20 is a custom version of Nvidia’s AI chips tailored to comply with U.S. export controls imposed under the Biden administration. It is a deliberately downgraded product that lacks some of the advanced features found in Nvidia’s top-tier offerings.