On Thursday, Senate Minority Leader Chuck Schumer (D-N.Y.) criticized President Donald Trump's approval of Nvidia Corp's (NASDAQ:NVDA) H200 AI chip sales to major Chinese firms.
Trump's Nvidia China Chip Strategy Faces Fierce Political Backlash
In a post on X, Schumer accused Trump of advancing a risky policy by allowing advanced U.S. semiconductor exports to Chinese companies allegedly connected to Beijing's military ambitions.
"Giving China access to this premier US technology is dangerous and threatens our lead in the AI race that will shape the global economy for decades," Schumer wrote on X.
According to reports, the Commerce Department approved export licenses for roughly 10 Chinese companies, including Alibaba Group Holding Ltd. ADR (NYSE:BABA), Tencent Holdings ADR (OTC:TCEHY), ByteDance and JD.com Inc. (NASDAQ:JD), as well as distributors such as Lenovo Group Ltd. (OTC:LNVGY) and Foxconn Technology Co. Ltd. (OTC:FXCOF), permitting purchases of up to 75,000 Nvidia H200 chips each.
Beijing Blocks Nvidia H200 Deliveries Despite US Approval
Despite U.S. clearance, no shipments have occurred because Chinese authorities have reportedly discouraged domestic firms from proceeding, prioritizing homegrown AI chipmakers like Huawei Technologies.
Commerce Secretary Howard Lutnick said China's government "has not let them, as of yet, buy the chips," citing Beijing's efforts to strengthen its domestic semiconductor industry.
The Trump-brokered arrangement also includes a 25% revenue-sharing requirement for the U.S., adding another layer of geopolitical friction.
National Security Concerns Intensify Over US-China AI Competition
Chris McGuire of the Council on Foreign Relations said, "It is remarkable that President Trump keeps getting convinced to put Nvidia's interest ahead of America's."
Sen. Chris Coons (D-Del) earlier this month pressed the Commerce Department for answers on export approvals and potential national security implications.
Meanwhile, some analysts contend that controlled chip sales could preserve U.S. leverage while slowing China's push toward complete technological independence.
Previously, Nvidia CEO Jensen Huang warned that viewing China only as a rival in the AI race could weaken international cooperation and potentially damage long-term U.S. interests.
Trump reportedly made an 11th-hour personal push for Huang to join his China delegation despite concerns his presence could intensify scrutiny over U.S. chip exports to Beijing.
Price Action: Nvidia shares closed Thursday at $235.74, up 4.39% and rose another 0.90% to $237.87 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, Nvidia ranks in the 98th percentile for Growth, reflecting strong performance across short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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