A coalition of House Democrats has criticized the Trump administration’s move to permit the sale of advanced Nvidia computer chips to China.
In a letter sent to Lutnick on Sunday, Representatives Raja Krishnamoorthi (D-Ill.) and Gregory Meeks (D-N.Y.) expressed concerns that the administration is using export controls on semiconductors and advanced computing components as strategic bargaining tools. They remarked, “Guardrails are for negotiation.”
Previously, in May, the White House had declared limits on the sale of Nvidia’s H20 chips to China, widely utilized in artificial intelligence models. However, by mid-July, they shifted their stance, with Lutnick mentioning to CNBC that this change was related to a trade agreement involving rare earth magnets.
This week, administration officials, including Treasury Secretary Scott Bescent, are in Stockholm for discussions with China, focusing on a shaky truce regarding tariffs between the two nations. Interestingly, Lutnick was absent during his scheduled talk on Monday, as reported by Bloomberg.
Following Krishnamoorthi and Meeks’ letter, five Democratic senators sent a separate message to Lutnick, describing the administration’s approach to semiconductors as “very troubling.”
Democrats Mark Warner (VA.), Jack Reed (RI), Elizabeth Warren (MA), Chuck Schumer (NY), and Chris Coons (DE) noted that China’s advancements in artificial intelligence pose significant risks to U.S. national and economic security. They urged a quick reversal of these policies to safeguard American interests in the computing sector.
The ongoing competition over computer chips comes after the White House’s recent focus on rivalry with China and the announcement of an AI action plan aimed at boosting U.S. investment and innovation in the field.
Lutnick also encountered inquiries from Republican lawmakers regarding AI chip exports last week, following the administration’s rollback of Biden-era chip sale regulations worldwide.
