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.

Trump said on Monday that he might allow Nvidia to sell a more advanced artificial intelligence chip in China based on the chipmaker’s latest and most advanced Blackwell platform. The performance of H20 chips sold to China is restricted compared with those more advanced processors sold to customers in the US.