“The Commerce Department made the right call in banning the H20,” Moolenaar said in the letter, demanding more information. “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.”
Nvidia’s (NVDA.O), opens new tab announcement this week that it would be allowed to resume sales reversed an export restriction imposed by the Trump administration in April to keep advanced AI chips such as the H20 out of Chinese hands over national security concerns, an issue that has found rare bipartisan support. It drew swift questions and criticism from U.S. legislators, including Moolenaar, who said on Monday that he would seek “clarification” from the Commerce Department.
Shares of Nvidia turned negative on Friday after Moolenaar came out with the stronger criticism.
An Nvidia spokesperson later defended the U.S.’ relaxation of restrictions, saying America wins when the world builds on U.S. technology. “The government made the best decision for America, promoting U.S. technology leadership, economic growth and national security,” the spokesperson said in a statement.
A representative of the Commerce Department did not immediately respond to a request for comment.
The letter was an unusual example of public disagreement with a Trump administration policy from a fellow Republican, signaling the depth of the national security concerns around the AI chip’s export to China among China hawks in Washington.
On Tuesday, Lutnick said the planned resumption of sales of the H20 chip was part of U.S. negotiations on rare earths and magnets.