Congress Blocks Trump’s Push to Let Nvidia Sell Advanced AI Chips to China
Washington draws a hard line on tech exports—again.
The Geopolitical Standoff
Forget backroom deals. The latest move from Capitol Hill slams the door on a proposed policy shift that would have allowed Nvidia, the undisputed heavyweight in AI hardware, to resume selling its most advanced semiconductors to Chinese firms. The push, reportedly championed by the former administration, just hit a legislative wall.
It's a classic power play: cutting off access to the computational engines driving the next decade of innovation. The message is clear—strategic technology is now a core national asset, not just another export commodity. This isn't about tariffs; it's about who gets to build the future.
The Ripple Effect
Markets hate uncertainty, and this creates a truckload of it. For Nvidia, it's a forced retreat from one of its largest potential growth markets. For China's tech giants, it's a mandate to double down on homegrown silicon, accelerating a parallel tech universe that operates outside Western ecosystems.
And for investors? It's another reminder that in the high-stakes game of tech supremacy, regulatory whims can vaporize growth projections faster than a crypto exchange collapse. Some hedge funds are probably already shorting the 'detente' narrative.
The Bottom Line
This blockade reinforces a fragmented global tech landscape. Supply chains will twist further, innovation will duplicate, and the cost of progress will spike. The great decoupling isn't coming—it's being codified into law, one advanced chip at a time. Bet on more volatility, not less, as politics continues to rewrite the rules of the tech economy.
Lawmakers say China could use these chips to build military tech
The AI Overwatch Act was introduced by Congressman Brian Mast, who said:-
“Companies like Nvidia are requesting to sell millions of advanced AI chips, which are the cutting edge of warfare, to Chinese military companies like Alibaba and Tencent. These are the same companies that work to spy against the United States of America, companies that the Chinese Communist Party uses to try and defeat the United States.”
Mast added, “This bill is very simple. It keeps America’s advanced AI chips out of the hands of Chinese commie spies.”
The bill ties directly into the Commerce Department’s H200 rule and adds more teeth to it. That rule was meant to stop U.S. chips from falling into the wrong hands, but lawmakers clearly think it didn’t go far enough.
This isn’t the first time Congress has done this kind of thing. Since 1976, any foreign arms deal that could change the military balance has required congressional review. Now they want the same level of control over AI chip exports. If a product can boost a foreign military, they want a say before it leaves U.S. soil.
Fifteen lawmakers have already signed onto the bill as cosponsors. That list includes China Select Committee Chairman John Moolenaar, South and Central Asia Subcommittee Chairman Bill Huizenga, Europe Subcommittee Chairman Keith Self, East Asia and Pacific Subcommittee Chairwoman Young Kim, Intelligence Committee Chairman Rick Crawford, and Cyber Subcommittee Chairman Darin LaHood.
AI Overwatch bill passed alongside other national security measures
The AI Overwatch Act wasn’t the only bill advanced by the committee this week. Lawmakers moved forward with a bunch of related measures, including the China AI Power Report Act, the Data Driven Diplomacy Act, and several others tied to art purchases, discrimination assessments, and construction projects.
Every single one of them was part of the full committee markup.
The full list of passed measures includes:
- H.R. 6875 – AI Overwatch Act
- H.R. 6275 – China AI Power Report Act
- H.R. 7036 – Data Driven Diplomacy Act
- H.R. 7028 – Secretary of State fund notification bill
- H.R. 6411 – Preshevo Valley Discrimination Assessment Act
- H.R. 7054 – Construction notification bill
- H.R. 4532 – American Cooperation with Our Neighbors Act
- H.Res. 515 – 90th birthday of the Dalai Lama recognition
- H.R. 4368 – Caribbean Basin Security Initiative
- H.R. 3307 – Eastern Mediterranean Gateway Act
- H.R. 7052 – Conflict Prevention Act
Meanwhile, Nvidia CEO Jensen Huang was busy at the World Economic Forum in Davos. He tried to highlight the “booming” job market around AI infrastructure. Huang said the AI chip industry is creating “six-figure salaries” for tradespeople like electricians and steelworkers building factories.
“This is the largest infrastructure build-out in human history that’s going to create a lot of jobs,” Huang said. He pointed out that skilled trades are finally getting attention and good pay, adding, “we’re talking about six-figure salaries for people who are building chip factories or computer factories or AI factories.”
But not everyone shares Huang’s optimism. Data from Challenger, Gray & Christmas shows that AI led to nearly 55,000 layoffs in the U.S. in 2025. And while construction workers may be getting paid, white-collar jobs are vanishing fast.
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