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US Lawmakers Urge Tighter Curbs on China Chip Tools

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U.S. lawmakers are pressing for stricter export controls to limit China’s access to advanced semiconductor manufacturing equipment, warning that existing gaps pose risks to national security. In a bipartisan letter, senior members of the House called on the State and Commerce Departments to pursue broader, countrywide restrictions in coordination with allied nations.

House Select Committee on China Chairman John Moolenaar and House Foreign Affairs Committee Chairman Brian Mast urged tighter controls on key chipmaking tools and subcomponents that China cannot produce domestically. The letter was addressed to Secretary of State Marco Rubio and Commerce Secretary Howard Lutnick, and called for restrictions not only on new equipment sales but also on servicing existing tools operating in Chinese facilities.

Lawmakers argue that maintenance and software updates are critical for advanced chipmaking systems to remain operational, and limiting such support could slow China’s semiconductor progress. The request comes amid concerns that Beijing is accelerating imports of foreign-made equipment essential for producing high-end chips.

The debate has intensified following reports that Chinese researchers have developed a prototype lithography machine modeled on extreme ultraviolet systems produced by ASML. EUV lithography tools are considered crucial for manufacturing the most advanced chips used in artificial intelligence, smartphones, and defense systems.

Congressional leaders have asked the administration to provide a strategy briefing within a month outlining how it plans to secure allied cooperation on expanded export controls. The move reflects growing bipartisan consensus in Washington that semiconductor supply chains remain a central front in U.S.–China technological competition.

Trump’s Approval of Nvidia AI Chip Sales to China Sparks Backlash in Washington

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U.S. lawmakers and former national security officials are pushing back against President Donald Trump’s decision to allow Nvidia to sell its H200 artificial intelligence chips to China, warning the move could weaken America’s AI advantage and bolster Beijing’s military capabilities.

The Trump administration on Tuesday formally approved China-bound sales of Nvidia’s H200, the company’s second most powerful AI processor, setting the stage for shipments to resume despite long-standing concerns in Washington over national security risks.

At a congressional hearing, Matt Pottinger, a former White House Asia adviser during Trump’s first term, said the administration was on the “wrong track” and argued that selling advanced AI chips to China would “supercharge Beijing’s military modernization.” He warned the chips could enhance capabilities ranging from nuclear weapons development to cyber warfare, autonomous drones and intelligence operations, urging Congress to impose stricter guardrails.

Several Republican lawmakers voiced unease. Congressman Michael McCaul said the United States should not be selling sensitive technology to a country that routinely steals American intellectual property. Democratic lawmakers were more direct, with Congressman Gabe Amo likening the policy shift to “handing our opponents our coordinates in the middle of a battle.”

The administration has defended the decision, with White House AI czar David Sacks arguing that controlled sales could discourage Chinese firms such as Huawei from accelerating efforts to develop rival chips. Pottinger dismissed that logic as unrealistic.

Under the new rules, chips exported to China must undergo third-party testing, and China cannot receive more than 50% of the volume sold to U.S. customers. Nvidia must also certify sufficient domestic supply, while Chinese buyers are required to demonstrate security safeguards and pledge not to use the chips for military purposes.

Some lawmakers acknowledged these safeguards. Congressman Brian Mast, who chairs the House Foreign Affairs Committee, said “know your customer” provisions were significant. Others remained skeptical, noting the rules rely heavily on self-reporting by Chinese buyers and would add strain to the Commerce Department, which oversees export controls.

Adding to the uncertainty, Reuters reported that Chinese customs officials recently indicated Nvidia’s H200 chips were not permitted to enter the country, raising questions about how quickly shipments could actually resume.

Nvidia Says No Upfront Payment Required for H200 AI Chips

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Nvidia said on Tuesday it does not require upfront payment for its H200 artificial intelligence chips, pushing back against reports that it had imposed unusually strict payment terms on Chinese customers.

In a statement to Reuters, Nvidia said it “would never require customers to pay for products they do not receive,” responding to a January 8 report that suggested the company was demanding full advance payment from Chinese buyers seeking access to its AI processors.

According to a source familiar with the matter, Nvidia’s standard commercial terms for Chinese clients have previously included advance payment requirements, though customers were sometimes permitted to place a deposit instead of paying the full amount upfront. The source added that, for the H200 chip, Nvidia has been more cautious in enforcing its conditions due to uncertainty over whether Chinese regulators would approve shipments.

Concerns over regulatory approval have been heightened by ongoing geopolitical tensions and export controls affecting advanced semiconductors. Any requirement for full prepayment would effectively shift financial risk from Nvidia to customers, forcing them to commit capital without assurance that Beijing would authorize the imports or that the chips could be deployed as planned.

The H200 is one of Nvidia’s most advanced AI accelerators, designed for large-scale data center workloads, and demand for the chip has surged globally as companies race to expand AI computing capacity.