Congress Urged to Police Trump’s Chip Export Policy

Washington has treated advanced semiconductors as a strategic chokepoint since the Commerce Department’s Bureau of Industry and Security imposed sweeping China controls on Oct. 7, 2022, then tightened them on Oct. 17, 2023. The rules restrict high-end AI accelerators and chipmaking equipment that could strengthen China’s military and computing capabilities. Because enforcement must keep pace with product redesigns, shell companies and transshipment routes, congressional oversight of BIS funding, licensing and allied coordination is central to preserving the US technological lead.

Under President Donald Trump, the policy shifted sharply in 2025. BIS told Nvidia in April that exports of its H20 processor to China would require a license, prompting the company to book a $5.5 billion charge. The administration moved in July to permit sales again, and an Aug. 10 arrangement called for Nvidia and AMD to remit 15% of certain China chip revenue to the US government. Lawmakers are being urged to scrutinize the licensing rationale and strengthen chip tracking, penalties and multilateral enforcement.