Critics caution that relaxing export controls could enhance Beijing’s military capabilities and weaken the US’s leading position in the AI race, while the White House defends its decision. Reading Time: 3 minutes Why you can trust SCMP By Xinmei Shen and Bochen Han in Washington Published: 6:34am, 15 Jan 2026 | Updated: 8:29am, 15 Jan 2026 During a foreign affairs hearing, witnesses and lawmakers sharply criticized the Trump administration’s approval to sell Nvidia’s H200 AI chips to China, urging a reversal of the decision. Meanwhile, the White House’s top technology adviser defended the move in the administration’s first public testimony regarding the latest export control policies. Former Deputy US National Security Adviser Matt Pottinger called allowing China to purchase Nvidia’s second most powerful AI chip a “wrong path” on Wednesday, warning it would “supercharge” Beijing’s military modernization and harm the US’s objective to lead the AI competition. The remarks came at a hearing convened by the House Committee on Foreign Affairs focused on how the US can prevail in the AI race against China. The Trump administration on Tuesday announced new rules permitting US chip giants Nvidia and AMD to sell certain advanced AI chips to China under specific conditions, including testing the chips in US laboratories and limiting exports to no more than half the amount sold domestically. In December, Trump declared he would permit Nvidia to export its H200 chips to China, with the US government receiving a 25 percent share of sales.

On Wednesday, he signed a proclamation imposing a 25 percent tariff on advanced chips like Nvidia’s H200, targeting chips routed through the US for re-export and enabling the government to take a sizable portion of Nvidia’s sales to China. Oren Cass, founder and chief economist of the conservative Washington-based think tank American Compass, testified that the H200 agreement demonstrates how US policy “has been seemingly reshaped by business executives who promote China as a partner and prioritize short-term profit over the national interest. " Trump confirms Nvidia deal to sell lower-end chips to China Lawmakers from both parties expressed concern over the policy. Ranking Committee Member Gregory Meeks acknowledged “overwhelming consensus” among Democrats and Republicans that the US must lead the AI race, arguing that easing export controls on advanced AI chips means the administration is “ceding our advantage” and “actively undermining our national security. ” Advertisement Select Voice Choose your listening speed Get through articles 2x faster 1. 25x 250 WPM Slow Average Fast 00:00 00:00 1. 25x