The release of the H20 chip to China is considered a response to calls from the Chinese government for relaxed controls on technology exports, aiming to mitigate the impacts of previous tariffs that escalated trade conflicts. This new strategy indicates a departure from the administration's earlier hardline tactics, which included imposing triple-digit tariffs and facing retaliatory actions from China, such as restricting exports of critical materials. The updated approach appears to focus on bolstering American technological leadership while maintaining essential diplomatic relations with one of its largest trade partners.