U.S. House Panel Criticizes Resuming Nvidia H20 Chip Sales to China

Republican Representative John Moolenaar criticizes the decision to resume sales of Nvidia H20 chips to China, citing concerns about advancing Beijing's AI capabilities. U.S. Commerce Secretary Howard Lutnick received a letter demanding information on the decision, which reversed a previous export ban on national security grounds.

The head of a House of Representatives panel on China has expressed strong opposition to the U.S. Commerce Department's decision to resume sales of Nvidia's H20 chips to China, arguing it could bolster Beijing's artificial intelligence capabilities.

In a letter to Commerce Secretary Howard Lutnick, Republican Representative John Moolenaar claimed the chips could undercut the U.S. AI advantage and aid Chinese companies in capturing global AI model market share. Moolenaar insisted the original ban on sales was the correct decision and requested more details on the policy reversal.

Nvidia's announcement led to a decline in the company's stock prices, as it reversed an export restriction put in place by the Trump administration. An Nvidia spokesperson highlighted the benefits of U.S. technology leadership this decision could promote.

(With inputs from agencies.)