TLDR
- White House officials are pushing Congress to reject legislation that would block Nvidia from selling advanced chips to China and embargoed nations.
- The GAIN AI Act would require chipmakers to serve U.S. customers first before exporting controlled processors overseas.
- Lawmakers are developing the SAFE Act as an alternative approach to restrict chip exports to China for 30 months.
- Nvidia reports zero revenue expectations from China but remains interested in accessing the market.
- Treasury Secretary suggests Nvidia might sell Blackwell chips to China once newer technology replaces them.
Trump administration officials are asking Congressional members to vote against a bill that would limit Nvidia’s chip sales to China. The lobbying effort gives the chipmaker a boost in its fight for market access.
The GAIN AI Act would establish new rules for AI processor exports. Chipmakers would need to prioritize American customers before selling to China and other embargoed countries. The bipartisan legislation aims to ensure domestic companies get hardware access first.
Senator Jim Banks sponsored the bill with “America first” framing. The measure pushes back against Trump’s suggestions about allowing chip sales to China. Lawmakers continue debating whether to include GAIN AI in the annual defense bill.
Company Pushes Back on Restrictions
Nvidia has lobbied heavily against the proposed legislation. The company argues American customers aren’t facing product shortages. White House opposition to the bill marks a victory for Nvidia’s efforts.
Microsoft and other tech companies supported the GAIN AI Act. They wanted guaranteed access to hardware over Chinese competitors. The bill’s potential failure represents a setback for these hyperscalers.
The White House office of legislative affairs is leading the lobbying campaign. The administration’s stance improves chances the bill won’t pass.
Alternative Legislation Under Development
Congress isn’t abandoning China export controls. Lawmakers are working on different legislation called the SAFE Act of 2025. Senator Chris Coons is leading this effort.
The SAFE Act would formalize existing chip export limits. It would require the Commerce Department to reject applications for chips more powerful than currently permitted models. The restrictions would last 30 months.
The time limit reflects how fast AI hardware technology changes. The industry has transformed dramatically since ChatGPT launched three years ago. Lawmakers recognize export rules need flexibility for evolving technology.
Both bills show strong bipartisan support for limiting Beijing’s AI capabilities. Congress wants a bigger role in semiconductor export policy. This area has become central to U.S.-China competition.
Export Rules and Market Outlook
Washington first controlled Nvidia’s China shipments in 2022 citing military concerns. Controls have tightened multiple times since then. Trump restricted H20 chip sales in April even though Nvidia designed them for Chinese market compliance.
The administration later approved H20 sales in exchange for 15% revenue cuts. Trump floated allowing downgraded Blackwell chip sales to China. The idea worried national security officials.
CEO Jensen Huang told Bloomberg Television that Nvidia’s China revenue forecast is zero. He said the company would love opportunities to reengage the Chinese market. China has discouraged domestic firms from buying even permitted chips as Beijing pursues AI self-reliance.
Treasury Secretary Scott Bessent told CNBC that Blackwell chips might eventually go to China. This could happen once the processors are no longer cutting-edge technology. Bessent estimated a 12 to 24 month timeline as Nvidia continues innovating.
The U.S. requires export approval for advanced chip sales to approximately 40 countries. These include Saudi Arabia and the UAE. Trump’s team has approved some sales to Gulf nations.
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