House China Panel Criticizes US Reversal on Nvidia AI Chip Sales to China

The Trump administration recently reversed restrictions to allow Nvidia to resume sales of its advanced H20 artificial intelligence chips to China, a move that has drawn criticism from U.S. lawmakers. Rep. John Moolenaar, chair of the House Select Committee on the Chinese Communist Party, expressed concerns that the H20 chip significantly surpasses China's current AI capabilities and could enhance Beijing's AI development and military power. Despite this, Nvidia CEO Jensen Huang downplayed his influence on the U.S. government's decision, attributing it to broader U.S.-China trade negotiations and emphasizing that the company only informs policymakers about the consequences of export controls. Huang also noted that ramping up production to meet potential demand will take time, and Nvidia's financial recovery from previous sales restrictions remains uncertain. The Trump administration's easing of export controls appears tied to a broader rare earth deal with China, though officials maintain the chip offered to China is not the company's most advanced. The debate continues over balancing U.S. technological leadership with national security concerns amid growing AI competition with China.