BY MIRABEL ODETA
U.S. lawmakers and former national security officials on Wednesday sharply questioned President Donald Trump’s decision to allow Nvidia to sell its second most powerful artificial intelligence chips to China, warning that the move could weaken America’s technological advantage and accelerate Beijing’s military capabilities.
The Trump administration formally approved China-bound sales of Nvidia’s H200 AI chips this week, a decision that could restart shipments of the advanced processors after months of restrictions. The move has sparked alarm among China hawks in Washington, who argue that access to such cutting-edge technology could give Beijing a significant boost in both commercial and military applications.
Matt Pottinger, who served as a senior Asia adviser in the White House during Trump’s first term, told lawmakers during a congressional hearing that the administration’s approach to artificial intelligence was misguided. He said allowing the sale of H200 chips to China would undermine Washington’s stated goal of maintaining leadership in the global AI race.
According to Pottinger, providing China with these advanced chips could dramatically accelerate its military modernization. He warned that enhanced computing power would strengthen capabilities across a wide range of areas, including nuclear weapons development, cyber warfare, autonomous drone systems, biological research, and intelligence and influence operations. He urged Congress to establish firm safeguards to ensure such a policy decision could not be repeated in the future.
Several Republican lawmakers echoed these concerns, though some stopped short of directly condemning the administration’s decision. Congressman Michael McCaul criticized China’s long-standing record of intellectual property theft and argued that the United States should not voluntarily provide technology that could be turned against its own interests.
Concerns over China’s access to advanced American-made semiconductors had previously led the Biden administration to impose strict limits on sales of high-end AI chips to Beijing, citing national security risks. Those restrictions were designed to slow China’s progress in advanced computing and military-related technologies.
Nvidia, however, defended the policy shift. A company spokesperson said the United States should support its domestic industries in competing globally through approved commercial sales, emphasizing that such business supports American jobs and innovation.
The Trump administration, under the guidance of White House AI policy lead David Sacks, has argued that allowing limited sales of advanced chips to China could actually discourage domestic Chinese firms—such as heavily sanctioned Huawei—from accelerating efforts to develop rival technologies. Pottinger dismissed that argument, calling it unrealistic and disconnected from China’s long-term strategic ambitions.
Uncertainty also remains over how many chips would ultimately be sold. Reports indicate that Chinese customs authorities have told agents that Nvidia’s H200 chips are currently not approved to enter the country, raising questions about how smoothly the new policy could be implemented.
Under the regulations released this week, any chips exported to China must first be evaluated by an independent testing laboratory to verify their technical AI capabilities. The rules also cap Chinese access to no more than half of the total number of chips sold to U.S. customers. Nvidia must confirm that sufficient supply remains available domestically before shipping any units abroad.
In addition, Chinese buyers are required to demonstrate adequate security measures and formally commit that the chips will not be used for military purposes. Some lawmakers welcomed these provisions. Congressman Brian Mast, who chairs the House Foreign Affairs Committee overseeing the hearing, said “know your customer” requirements included in the rules were meaningful safeguards.
Others remained skeptical. Jon Finer, who served as deputy national security adviser under former President Joe Biden, warned that enforcing the rules would place a heavy burden on the Commerce Department, which oversees export controls. He also cautioned that the system relies heavily on Chinese companies making truthful declarations about how the chips will be used.
Democratic lawmakers were more direct in their criticism of the administration’s policy shift. Congressman Gabe Amo described the decision as dangerously shortsighted, arguing that it risked handing strategic advantages to a geopolitical rival at a critical moment.
The White House and the Commerce Department did not immediately comment on the criticism. China’s embassy in Washington and Nvidia also did not respond to additional requests for comment.
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