U.S. Lawmaker Challenges Nvidia Chip Sales to China

U.S. lawmaker John Moolenaar questions Commerce Secretary Howard Lutnick over President Trump's decision to allow Nvidia to sell H200 chips to China. Moolenaar argues this move risks U.S. strategic advantage in AI, citing alleged illegal procurement by Huawei Technologies.

U.S. lawmaker John Moolenaar is urging Commerce Secretary Howard Lutnick to explain President Donald Trump's recent decision to permit the sale of Nvidia's H200 chips to China. This decision marks a departure from Trump's own previous administration and that of former President Joseph Biden, which restricted China's access to powerful U.S. AI technology.

Moolenaar's letter to Lutnick references media reports suggesting Trump's decision was partially based on performance improvements claimed by Huawei Technologies Co, related to AI chips illegally sourced from Taiwanese and Korean suppliers. According to Moolenaar, Huawei's next product may falter due to reliance on domestic Chinese chipmakers, indicating that Trump's previous export controls were effective.

Moolenaar emphasized that AI progress relies on total computing power rather than individual chip efficiency. He expressed concern that selling advanced chips to Chinese firms might jeopardize the strategic advantage obtained in Trump's first term. Moolenaar has requested a briefing from Lutnick on the decision's underlying evidence and analysis by mid-January, as the White House and Commerce Department have yet to comment.

(With inputs from agencies.)