Republican Representative John Moolenaar, chair of the House Select Committee on China, has voiced strong opposition to the Commerce Department’s recent decision to allow Nvidia to resume sales of its H20 AI chips to China.
In a letter to Commerce Secretary Howard Lutnick, Moolenaar warned that the reversal of the earlier ban on H20 exports—originally imposed in April due to national security concerns—poses significant risks, including enabling China’s military AI capabilities, strengthening its censorship apparatus, and undermining U.S. technological leadership.
“The Commerce Department made the right call in banning the H20. We can’t let the Chinese Communist Party use American chips to train AI models that will power its military, censor its people, and undercut American innovation,” Moolenaar wrote.
The H20 chip was developed by Nvidia following U.S. export restrictions that limited the sale of its most powerful AI processors to China. While technically compliant with those rules, the H20 remains highly capable in AI inference tasks—an essential function for generative models and surveillance systems.
The Select Committee previously raised alarms over reports that Chinese tech firms, including Tencent and DeepSeek, were using H20 chips to power advanced AI projects. Lawmakers on the committee have argued that even watered-down chips can accelerate the development of tools used by the Chinese government to control information and monitor citizens.
Following the Commerce Department’s announcement, Nvidia’s stock slipped amid investor uncertainty. The company defended its position, stating that continued access to global markets ensures U.S. dominance in AI hardware and software.
The policy shift is also believed to be part of a broader economic dialogue between Washington and Beijing, which included negotiations over critical minerals like rare earths and industrial magnets. The Biden administration has maintained that strategic concessions are necessary to stabilize global supply chains and ease geopolitical tensions.
Still, the resumption of chip sales has triggered a backlash from key members of Congress. Moolenaar has requested a full briefing from the Commerce Department by August 8, seeking clarity on the licensing process, expected export volumes, and the identities of end users in China.
The dispute highlights the growing divide between U.S. industry interests and national security concerns, especially as AI becomes a central pillar of both economic and military power.
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