Nvidia plans to resume sales of its H20 AI chips to China following a policy change by the U.S. government, prompting criticism from the top Republican on the House Select Committee on China.
Representative John Moolenaar sent a letter to Commerce Secretary Howard Lutnick on Friday, warning that the decision could help China improve its AI capabilities and threaten the U.S. advantage in the field. He said the original ban on the chips was the right decision and asked for a briefing on how license applications for the H20 and similar chips will be evaluated.
The U.S. imposed restrictions on the export of advanced AI chips earlier this year over national security concerns. Nvidia designed the H20 for the Chinese market in response to earlier export controls, and it remains strong in inference performance, which is an important part of the AI chip market.
Moolenaar said the H20 outperforms anything Chinese firms like Huawei can currently produce at scale and could give a significant boost to China’s AI development. He cited concerns that the chips are already being used by Chinese companies to build large AI systems and supercomputers.
The Commerce Department must still approve export licenses, but Nvidia said it has been assured that the licenses will be granted and expects shipments to begin soon. Lutnick said earlier this week that the resumption of sales was part of broader negotiations with China, including deals on rare earths and magnets.
Nvidia defended the policy shift, saying it supports U.S. technology leadership, growth, and national security. The company said it believes the decision benefits the country by promoting global use of American technology.
Shares of Nvidia turned lower on Friday after Moolenaar’s stronger public criticism. The letter marks a rare instance of disagreement within the Republican Party over a Trump administration policy related to China.
