Congress moves to block Donald Trump's push to allow Nvidia sell advanced AI chips to China

Trump’s plan to let Nvidia send advanced AI chips to China is facing a heavy backlash from both Republicans and Democrats in Congress.

The lawmakers have put forward a new bill that could block it completely, called the AI Overwatch Act, and it just passed through the House Foreign Affairs Committee. The bill gives lawmakers more power to stop these kinds of exports.

That means the president can’t just wave deals through anymore, not when the chips can be used for military purposes.

The fight started after reports showed Nvidia pushing for licenses to sell its high-powered AI chips to Chinese firms like Alibaba and Tencent. That didn’t sit well with Washington.

Many lawmakers are calling Nvidia CEO Jensen Huang himself a national security threat, saying his chips are strong enough to support cyber warfare, nuclear programs, and autonomous weapons. They also pointed out his close relationship with China’s Jinping as well as the fact that he is text buddies with the POTUS himself.

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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