Two Democrats Attack Lutnick for Overlooking Nvidia Chips Supply to China

[ABS News Service/13.11.2026]

Commerce Secretary Howard Lutnick is coming under increased scrutiny from Congressional lawmakers as more information emerges about former Nvidia CEO Jensen Huang’s relationship with China and his influence on US export controls.

The two lawmakers who will lead the powerful Senate Finance and House Ways and Means Committees in the next Congress are demanding the Administration retain all records relating to its decision to allow the sale of advanced Nvidia AI chips to Chinese companies with links to the Chinese government and military.

Finance ranking Democrat Ron Wyden (Ore) and Ways and Means ranking Democrat Richard Neal (Mass) sent a letter yesterday to Mr. Lutnick announcing their plans to investigate his role in the Nvidia scandal and the Administration’s decision to grant Nvidia approval to export its advanced AI chips to China even after learning about Mr. Huang’s relationship with an alleged Chinese intelligence asset.

The two Democrats said they are concerned that the Administration allowed Nvidia to bypass Section 232 national security tariffs.

“The Trump Administration’s ostensible attempt to mask an unconstitutional export tax as a national security tariff action – benefitting both Nvidia and the Chinese government – raises serious concerns within our Committees’ jurisdiction over matters relating to taxation and tariffs,” they wrote.

“Congress wrote Section 232 to give the President a tool to take action against imports he has determined to pose a national security threat; Trump’s use of the statute appears to have done the opposite, undermining U.S. national security and putting Americans at risk.”

The lawmakers said that Nvidia chips manufactured in Taiwan could be sold to Chinese companies if they were first imported into the United States for a security review, which would require payment of a 25 percent Section 232 tariff. Then Commerce would grant Nvidia an export license to sell the chips to Chinese companies.

Records Wanted

The two Democrats noted that according to reports, Commerce suspended its investigation into suspected smuggling into China of certain Nvidia chips following outreach from the company.

They asked Commerce to preserve all records related to:

· the Commerce Department’s investigation under Section 232 of the Trade Expansion Act of 1962 into imports of semiconductors and resulting actions, including tariffs;

· The Department’s consideration and approval of export license applications submitted by Nvidia and

· the Department’s communications with and regarding Nvidia, Jensen Huang or any of their agents or representatives.

Separately, Sen. Elizabeth Warren (D-Mass), who will chair the Senate Banking Committee come January, said yesterday that Mr. Lutnick and Commerce Undersecretary Jeffrey Kessler “must explain why they have not closed export control loopholes and act today to ensure our advanced technology is not fueling China’s military.”

Sen. Warren and Sen. Chris Coon (D-Del) sent a letter to Mr. Lutnick and other Administration official directing them to preserve all documents, communications, records and other materials related to NVIDIA’s exports of advanced AI chips to China and related national security risks.

“Reports suggest that officials within the government – including at the White House, State Department, and Commerce Department – were aware of concerns about NVIDIA, its relationship with Megaspeed, and the suspected Chinese intelligence operation, yet did not move to block the continued flow of advanced AI chips to Megaspeed or other companies affiliated with the suspected operative,” they wrote.

“Questions also remain regarding whether or not prudent defensive counter-intelligence action was taken or national security recommendations were overruled.”

The senators also requested a congressional briefing on the national security risks posed by the suspected intelligence operation.

House Select Committee on China Chairman John Moolenaar (R-Mich) said yesterday that in the wake of the disclosures about Nvidia’s influence over US export controls, Congress should move quickly to pass bipartisan export control legislation in the year-end national defense bill.

US Trade Representative Jamieson Greer said in an interview yesterday on CNBC that the Administration is concerned that Nvidia’s AI chips may have fallen into the wrong hands. The Administration wants the “crown jewels” of its AI industry to remain in the hands of the United States and its allies.