U.S. lawmakers push back on Trump plan to allow Nvidia AI chip exports to China
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US President Donald Trump’s plan to license Nvidia to ship some of its more powerful AI chips to China is ruffling the feathers of some of Washington’s most prominent China hawks, including members of his own party.
The pushback intensified this week when the U.S. House Foreign Affairs Committee made a recommendation. invoice It aims to expand congressional oversight of AI chip exports.
The proposal, known as the AI Overwatch Act, was introduced last month by committee chairman Rep. Brian Mast, R-Fla.
Both the House Foreign Affairs Committee and the Senate Banking Committee would need to approve any shipping licenses for advanced chips within 30 days, giving lawmakers the power to block sales by a joint resolution.
The bill comes as the Trump administration plans to issue permissive licenses. Nvidia It will sell H200 chips to China, which are much more powerful than the processors previously allowed for export.
If the AI Overwatch Act is passed, existing licenses for such AI chip transfers would be revoked and the administration would impose a temporary ban until it presents a national security strategy on AI exports. It includes exemptions for “trusted” US companies that send chips abroad under US control, provided they meet security standards.
“Companies like Nvidia are demanding to sell millions of advanced AI chips, the cutting edge of warfare, to Chinese military companies. Alibaba’s And Tencent” said Chairman Mast, framing this as a national security risk.
The bill also includes Rep. John Moolenaar, R-Mich., the Republican Chairman of the Select Committee on China. It was also supported by. I called him “It’s a critical step toward maintaining America’s technological edge.”
Still, the extent of support the AI Overwatch Act could attract in the House and Senate remains unclear.
Discord in Washington
The legislation is expected to serve as a linchpin in a larger battle brewing in Washington between lawmakers who view Nvidia chip exports as a national security risk and officials who argue the exports help maintain U.S. technological dominance.
The latter includes crypto czar David Sacks, who has already criticized White House AI and the AI Overwatch Act. Silicon Valley entrepreneur and investor recently republished A viral social media post claims the bill would weaken Trump’s authority over AI chip exports.
Sacks and those in the Trump administration who support more Nvidia shipments abroad have argued that U.S. chip restrictions are counterproductive and leave room for Chinese rivals.
Instead, they say it is advantageous for US-designed chips to remain at the center of the global AI infrastructure. This is consistent with arguments made by Nvidia CEO Jensen Huang and industry lobbyists.
But bipartisan lawmakers on the other side have argued that Nvidia’s H200s could bolster China’s AI capabilities and be supported by its military.
Current U.S. chip controls require individual licenses from the Department of Commerce for the export or transfer of high-performance AI chips to entities in “countries of concern,” including China, Cuba, Iran, North Korea and Russia.
These controls include the H200, one of Nvidia’s most powerful AI chips. But last week Trump confirmed that his administration would approve the sale of processors to China as long as the United States takes a 25% cut of the revenue.
Pushback assembly
Most of the MPs’ objections came from the opposition party. In December, Senate Intelligence Committee Vice Chairman Mark Warner, D-Va., criticized Trump’s approval of H200 exports as evidence of a “haphazard and transactional approach” that lacked a coherent strategy against China.
“American companies must remain the undisputed leaders in AI hardware because our strategic competition with China on AI will depend on whose ecosystem fosters global adoption and innovation,” he said.
Meanwhile, Elizabeth Warren, D-Mass., the ranking member of the Senate Banking Committee, also warned that China is seeking such chips for military modernization, weapons design and artificial intelligence surveillance, citing Justice Department assessments.
But Trump also faced bipartisan resistance. Before the H200, the president also announced that he would allow Nvidia to continue H20 sales to China; This was a chip that the President restricted a few months ago.
At the time, lawmakers also responded with proposals for artificial intelligence chips. EARNINGS AI Act, It was introduced in November by a bipartisan group including Warren and Sen. Tom Cotton, R-Ark. The bill would require U.S. companies to prioritize domestic sales of advanced chips before exporting to China.
Despite Trump’s policy changes on chip exports, Chinese regulators have not allowed Nvidia chips to flow freely back into the country.
Reuters reported It was stated that last week, Chinese customs officials were instructed to block the import of H200 chips and technology companies were warned not to purchase them unless necessary.
