Advanced Micro Devices said Tuesday that it will soon restart shipments of its MI308 artificial intelligence chips to China. The stock climbed 7% following the news.

The company said Tuesday that the U.S. Commerce Department plans to resume reviewing its license applications to send the products to the world’s second-largest economy. AMD said it plans to start shipments once those are approved.

“We applaud the progress made by the Trump administration in advancing trade negotiations and its commitment to US AI leadership,” an AMD spokesperson said in a statement to CNBC.

The news comes as tensions simmer between the U.S. and China following a heated trade war set off by President Donald Trump’s tariff crusade that sent global markets spiraling.

Last week, Nvidia CEO Jensen Huang met with Trump as the chip industry urged the administration to loosen controls. Nvidia also said Tuesday that it would “soon” restart China shipments.

Chipmakers have previously warned of revenue hits connected to China restrictions.

AMD said in April it would incur up to $800 million in charges, while competitor Nvidia warned of a $5.5 billion hit from the restriction on its H20 processors. Huang said during a May earnings call that the company missed out on $2.5 billion in revenue tied to the chips.

Both the H20 and MI308 chips were developed for the Chinese market in response to U.S. export control rules.

Earlier this year, the Trump administration cracked down on AI chip exports to China, citing national security concerns. The administration also cancelled the “AI diffusion rule” implemented under President Joe Biden, which created tiers of different shipment restrictions.

The administration said the U.S. would implement new and simpler rules for chips. It has yet to roll out a comprehensive policy.

WATCH: Nvidia says it’s planning to resume sales of key ‘H20’ AI chip to China