Trump Faces Backlash over Decision Allowing Nvidia to Sell Advanced AI Chips to China
U.S. lawmakers and former officials voiced strong opposition on Wednesday to President Donald Trump’s decision permitting Nvidia to sell its advanced H200 artificial intelligence chips to China. Critics argue that the move undermines America’s technological advantage and risks bolstering Beijing’s military capabilities.
The Trump administration formally authorised the exports on Tuesday, allowing shipments of the H200 — Nvidia’s second most powerful AI processor — under a new rule designed to regulate such sales. The decision has alarmed national security experts who say it runs counter to Washington’s efforts to maintain its lead in cutting-edge AI technology.
Matt Pottinger, a former senior White House Asia adviser during Trump’s first term, told a congressional hearing that the administration is “on the wrong track” and warned that the move could damage U.S. strategic interests. He said exporting H200 chips “will supercharge Beijing’s military modernisation,” potentially enhancing China’s nuclear, cyber, and biological warfare capabilities, as well as its intelligence operations. Pottinger urged Congress to impose safeguards to prevent similar decisions in the future.
Divided Response in Washington
Several Republican lawmakers expressed unease about the decision without directly criticising Trump. Congressman Michael McCaul remarked, “They steal so much intellectual property from this country but we don’t have to sell it to them,” referring to China’s record on technology theft.
The Biden administration had previously banned sales of advanced AI chips to China due to national security concerns. Nvidia, however, defended the decision, saying, “America should always want its industry to compete for vetted and approved commercial business, supporting real jobs for real Americans.”
David Sacks, the White House’s AI policy chief, said the administration believes allowing some chip sales could discourage Chinese firms such as Huawei — which faces heavy sanctions — from accelerating efforts to develop competing technologies. Pottinger dismissed that rationale as “a fantasy.”
New Rules and Export Restrictions
Under the new regulations, all AI chips bound for China must first be reviewed by a third-party testing lab to verify their performance capabilities. The rules also cap China’s share of total sales at 50% of the volume sold to American customers. Nvidia must confirm sufficient U.S. supply before any exports occur, while Chinese buyers must demonstrate “adequate security procedures” and certify that the chips will not be used for military purposes.
Despite these conditions, doubts persist about enforcement. Jon Finer, who served as deputy national security adviser under former President Joe Biden, warned that the regulations would burden the Commerce Department and rely heavily on Chinese buyers to make honest disclosures about end users.
Lawmakers Call for Stronger Safeguards
Congressman Brian Mast, who chairs the House Foreign Affairs Committee, praised some aspects of the rule, particularly its “know your customer” provisions, which aim to improve transparency in export transactions. However, Democratic lawmakers offered harsher criticism. Congressman Gabe Amo said, “It’s truly like Trump is handing our opponents our coordinates in the middle of a battle. Why are we giving up our advantage?”
The White House, the Commerce Department, the Chinese embassy in Washington and Nvidia did not immediately respond to requests for comment.
with inputs from Reuters
