U.S. lawmakers push back on Trump plan to allow Nvidia AI chip exports to China

President Donald Trump’s decision to grant Nvidia licenses to export advanced artificial intelligence chips to China has sparked controversy among key figures in Washington, including members of his own party.

The resistance has escalated with the U.S. House of Representatives Foreign Affairs Committee moving forward with the AI Overwatch Act, a bill aimed at enhancing congressional oversight of AI chip exports.

The bill, introduced by Rep. Brian Mast, R-Fla., would require approval from both the House Foreign Affairs Committee and Senate Banking Committee for any shipment licenses of advanced chips within 30 days, giving lawmakers the authority to block sales through a joint resolution.

As the Trump Administration plans to grant licenses for Nvidia to sell its powerful H200 chips to China, the AI Overwatch Act seeks to revoke existing licenses for such transfers and implement a temporary ban until a national security strategy on AI exports is submitted.

The bill includes exemptions for U.S. companies considered “trusted” that ship chips abroad under U.S. control and meet security standards.

Chairman Mast expressed concerns about companies like Nvidia selling advanced AI chips to Chinese military entities, framing it as a national security threat.

The bill, also supported by Rep. John Moolenaar, R-Mich., Chairman of the Select Committee on China, is seen as a crucial step in safeguarding America’s technological superiority.

However, the level of support for the AI Overwatch Act in the House and Senate remains uncertain.

Divergence in Washington

The act is poised to be a focal point in a broader debate unfolding in Washington between lawmakers wary of Nvidia chip exports and officials advocating for such exports to uphold U.S. technological dominance.

White House AI and crypto czar David Sacks, a proponent of increased Nvidia shipments overseas, has criticized the AI Overwatch Act, arguing that it could undermine Trump’s control over AI chip exports.

Supporters of more Nvidia exports assert that U.S. chip restrictions have disadvantaged American companies and played into the hands of Chinese competitors.

On the other hand, bipartisan lawmakers express concerns that Nvidia’s H200 chips could boost China’s AI capabilities and be utilized by its military.

Current U.S. chip controls mandate individual licenses from the Commerce Department for high-performance AI chip exports to nations like China, Cuba, Iran, North Korea, and Russia.

Despite these controls, Trump’s administration has approved sales of Nvidia’s H200 chips to China, with the U.S. receiving a percentage of the proceeds.

Criticism of Trump’s approval of H200 exports has predominantly come from the opposition party, with concerns raised about the lack of a coherent strategy against China.

Sens. Mark Warner, D-Va., and Elizabeth Warren, D-Mass., have voiced apprehensions about China’s intentions to leverage AI chips for military purposes.

Despite bipartisan resistance, Trump’s policy shifts on chip exports have faced scrutiny, with lawmakers introducing proposals like the GAIN AI Act to prioritize domestic sales of advanced chips.

While Trump’s stance on chip exports has fluctuated, Chinese regulators have restricted the flow of Nvidia’s chips into the country.

Reports indicate that Chinese customs officials have blocked imports of H200 chips and cautioned tech firms against purchasing them unnecessarily.