Congress reviews AI chip exports to China with new veto power

The two no votes came from Reps. Rich McCormick (R-GA) and Andy Barr (R-KY). Rep. Darrell Issa (R-CA) voted present. Every Democrat on the committee voted yes — top Democrat Rep. Gregory Meeks (D-NY) said he wished the bill directly banned H200 chip sales to China but called it 'robust guardrails that would delay those sales and allow for congressional review.' Rep. Warren Davidson (R-OH) told colleagues that 'influencers at the behest of foreign governments and corporate lobbyists have spread immense amounts of lies and half-truths' in the days before the vote to kill the bill.

The bill was prompted directly by the Trump administration's move to grant export licenses allowing Nvidia to sell its H200 chips — far more powerful than previously permitted models — to China, with a condition that Nvidia would give the U.S. government a 25% revenue cut. That arrangement reversed Biden-era restrictions and alarmed national security hawks on both sides of the aisle. A bipartisan amendment added during markup included a two-year outright ban on exporting Nvidia's newer Blackwell-architecture chips to China.

The core mechanism mirrors congressional oversight of foreign arms sales: the administration would be required to notify both the House Foreign Affairs Committee and the Senate Banking Committee before approving advanced chip export licenses. Both panels would then have 30 days to review and could block the sale through a joint resolution. This gives Congress a veto over chip sales that previously required only executive branch approval through the Commerce Department's Bureau of Industry and Security.

The bill also revokes all existing export licenses for AI chips to the six covered countries — China, Cuba, Iran, North Korea, Russia, and Venezuela — until the administration submits a comprehensive national security strategy for AI technology transfer. The temporary ban creates a forced pause on current sales. The bill additionally allows the White House to add more countries to the covered list — a change Mast said was made with technical assistance from the administration, suggesting quiet coordination despite the public opposition from Sacks.

David Sacks led White House opposition, arguing the bill would improperly limit Trump's executive authority over trade and export policy. Laura Loomer called it 'pro-China sabotage disguised as oversight' and posted 'Kill the bill' to her large social media following. Mast fired back directly: 'My job is not to be a yes-man to David Sacks or for Jensen Huang.' He called Loomer's arguments 'Nvidia's lobbying talking points to sell chips to China.' The coordinated online campaign against the bill drew a formal rebuttal from Rep. Davidson on the House floor.

Nvidia CEO Jensen Huang's company is the primary commercial stake-holder in the outcome. Nvidia specifically designed its H20 chip to fall below previous export thresholds after the Biden administration banned more powerful models. The H20 and all chips above it fall under the new licensing requirements. The company generated approximately $18 billion in China and Hong Kong revenue in fiscal year 2024, creating intense financial incentive to lobby against tighter controls. Nvidia spokesperson John Rizzo told Axios that 'America should always want its industry to compete for vetted and approved commercial business.'