The Republican chair of the US House of Representatives’ China committee, John Moolenaar, has raised significant concerns over the Biden administration’s recent decision to permit Nvidia to export advanced chips to China. Moolenaar questions the reliability of the information that informed this decision, particularly regarding the competitive capabilities of Chinese technology firms such as Huawei against US companies like Nvidia.
President Donald Trump had previously announced the green light for Nvidia to sell its H200 chip, the company’s second most powerful model, to China. This decision has drawn scrutiny from various US security officials who believe it might facilitate China’s advancements in artificial intelligence (AI) and potentially bolster its military modernization efforts.
Nvidia’s CEO, Jensen Huang, has maintained that Huawei’s progress in chip development justifies allowing American companies to compete in the Chinese market. Nonetheless, critics argue that Nvidia may be exaggerating Huawei’s capabilities as a lobbying strategy. Moolenaar specifically highlighted Huawei’s attempts to circumvent US technology restrictions by utilizing multiple, less-capable chips to mirror the performance outcomes typically achieved by Nvidia’s superior products.
In a letter addressed to Commerce Secretary Howard Lutnick, Moolenaar pointed out that while Huawei claims its flagship 910C chip is a legitimate competitor to Nvidia, it is manufactured by Taiwan Semiconductor Manufacturing Company (TSMC), which is currently subjected to US export controls. Moolenaar noted that Huawei’s upcoming chip, the 910D, would be made in China and is expected to have inferior capabilities compared to the 910C. He indicated that this downward shift in technology indicates China’s limitations in replicating advanced semiconductor capabilities independently.
Moreover, reports suggest that DeepSeek, a prominent Chinese AI company, is relying on smuggled Nvidia chips to continue its AI training efforts. Moolenaar warned that exporting advanced chips to Chinese firms could undermine the strategic advantages the Trump administration secured during its term, emphasizing that such sales could compromise US dominance in the AI sector. He also requested a briefing from Lutnick regarding the rationale behind the decision to allow the H200 exports.
In response to growing bipartisan concerns, a group of six senators has introduced a bill aimed at restricting the issuance of H200 export licenses for a period of 30 months. This group includes both Republicans and Democrats, demonstrating a widespread apprehension regarding the implications of exporting advanced technologies to China.
Senator Mark Warner, the Democratic vice-chair of the Senate Intelligence Committee, echoed these concerns by stating that allowing Nvidia to export the H200 to China was a mistake. Within Congress, there appears to be a palpable frustration among Republicans about the administration’s decision; however, they are exercising caution to avoid alienating Trump’s base.
In its defense of the decision, Nvidia pointed out that similar criticisms were previously levied against its less-capable H20 chip, which was initially banned by Trump before being allowed back into the market. The company asserted that the ban on the H20 opened the door for foreign competitors, who subsequently gained significant market share that could have been maintained by US industry. Nvidia argued that the ability to conduct business in China through exports represents an opportunity to generate substantial economic benefits for the American workforce.
