Washington, D.C. | Jan 14 — GeokHub U.S. lawmakers and former officials expressed alarm on Wednesday over President Donald Trump’s decision to allow Nvidia (NVDA) to sell its H200 artificial intelligence chips to China, warning that the move could weaken America’s AI advantage and potentially enhance Beijing’s military capabilities.
The Trump administration formally approved the sale of Nvidia’s second most powerful AI chip to China on Tuesday, setting regulations that require chips to undergo third-party testing to verify their technical capabilities. Exports are limited so that China cannot receive more than 50% of total U.S. H200 sales.
National Security Concerns Raised
Matt Pottinger, a former senior White House Asia advisor, told a congressional hearing that permitting the sale “will supercharge Beijing’s military modernization, enhancing capabilities in areas from nuclear weapons to cyber operations and autonomous drones.” He urged Congress to establish safeguards to prevent similar decisions in the future.
Other lawmakers, including Republican Michael McCaul, voiced general concerns about China’s theft of U.S. intellectual property, while Democratic members were more critical. Congressman Gabe Amo described the policy as “handing our opponents our coordinates in the middle of a battle,” questioning why the U.S. would give up its technological advantage.
Regulatory and Export Measures
Under the rules, Nvidia must certify that there are enough H200 chips available domestically before any shipments to China. Chinese buyers must demonstrate adequate security procedures and commit not to use the chips for military purposes. At least one Republican, Congressman Brian Mast, praised the “know your customer” provisions in the policy.
However, critics argue that the system relies heavily on Chinese buyers’ honesty, creating a significant workload for the U.S. Commerce Department, which oversees export controls. Former Deputy National Security Advisor Jon Finer called the approach “a sizeable regulatory challenge.”
China’s Response and Market Uncertainty
Earlier reports indicate that Chinese customs authorities have instructed domestic companies not to purchase H200 chips unless strictly necessary, signaling potential hurdles even as Trump approved the exports.
An Nvidia spokesperson said the company believes “America should always want its industry to compete for vetted and approved commercial business, supporting real jobs for real Americans.”
The Trump administration, led by White House AI czar David Sacks, has argued that allowing these sales discourages Chinese competitors, such as Huawei, from intensifying efforts to match Nvidia and AMD’s advanced chip designs. Critics dismiss this reasoning as unrealistic.
