Tensions Rise as U.S. Lawmaker Challenges Nvidia Chip Sales to China
John Moolenaar, U.S. lawmaker, challenges the resume of Nvidia H20 chip sales to China, expressing national security concerns. The ban is crucial to avoid aiding China's military and censorship efforts. Nvidia shares fell following his objections, while both Commerce Department and Nvidia have yet to comment.
In a critical move, John Moolenaar, the chairman of the House Select Committee on China, has expressed strong objections to the resumption of sales of Nvidia's H20 equivalent graphics processing units to China. In a direct letter to U.S. Commerce Secretary Howard Lutnick, Moolenaar articulated his concerns on Friday.
"The Commerce Department made the right call in banning the H20," Moolenaar asserted. He emphasized the risk of enabling the Chinese Communist Party to leverage American chips for military advancements, censorship, and undermining American innovation. This development comes as Nvidia's share prices dipped following the disclosure of his objections.
Efforts to seek comments from both the Commerce Department and Nvidia have not yet yielded any responses. The situation continues to evolve amid geopolitical tensions and concerns over technology transfers.
(With inputs from agencies.)
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