A renewed congressional push to restrict China’s access to advanced American artificial intelligence chips has drawn criticism from Beijing, raising U.S.–China technology tensions just days after the two governments extended key elements of their trade truce.
Rep. John Moolenaar (R-Mich.), chairman of the House select committee on China, on Thursday urged Congress to pass bipartisan semiconductor export-control legislation in the year-end defense bill following Nvidia CEO Jensen Huang’s resignation.
Huang resigned on Nov. 12 as scrutiny continued over reports of his relationship with a woman suspected of links to Chinese intelligence.
“It is in our national interest for Nvidia and our other AI champions to succeed, but American companies should never jeopardize our nation’s security by giving Chinese companies access to their most advanced chips,” Moolenaar said in a statement emailed to The Epoch Times.
He also called for Nvidia to change its corporate practices and appoint leadership that puts national security first.
In a Nov. 8 statement, Nvidia’s board announced an independent investigation but said it had no reason to believe American national security or company secrets had been compromised.
Beijing responded Thursday to the prospect of additional restrictions.
Chinese Foreign Ministry spokeswoman Mao Ning accused Washington of inventing espionage allegations to justify restricting Chinese access to U.S. technology.
She urged Washington to stop using what she called an espionage narrative as a pretext for a technology blockade. The ministry did not announce retaliatory measures.
Chip Restrictions
The bipartisan effort to tighten semiconductor export controls predates Huang’s resignation, but lawmakers cited the recent allegations in renewed calls for action.
On Nov. 9, Sens. Jim Banks (R-Ind.) and Elizabeth Warren (D-Mass.) urged Congress to pass the AI Overwatch Act as part of the annual defense policy bill.
The measure would give Congress 30 days to review certain proposed exports of AI chips to China and other restricted countries, allowing lawmakers to block them through a joint resolution.
The senators also called on the Commerce Department to close loopholes they said could allow advanced chips to reach China’s military.
Two other bipartisan bills address different ways Chinese companies could acquire American semiconductor technology.
The Chip Security Act, advanced by the House Foreign Affairs Committee in March, would strengthen safeguards against chip smuggling, including technology to help determine where advanced chips are being used.
The MATCH Act, which advanced through the same committee in April, would tighten controls on advanced chipmaking equipment and strengthen coordination with U.S. allies that manufacture such machinery.
Congressional scrutiny has also extended to the administration’s handling of semiconductor export controls.
In a Nov. 11 letter, Warren and Sen. Chris Coons (D-Del.) asked the White House and federal agencies to preserve records concerning Nvidia export licenses, compliance with export regulations, and discussions surrounding U.S.–China trade negotiations, including the suspension of the Affiliates Rule.
Trade Confrontation
The renewed push comes roughly a year after American semiconductor restrictions and Chinese rare-earth export controls contributed to a major trade confrontation.
In September 2025, the Commerce Department introduced the Affiliates Rule, extending certain U.S. export restrictions to companies at least 50 percent owned, individually or collectively, by entities on designated American export-control blacklists.
The measure was designed to prevent restricted companies from obtaining controlled American technology through subsidiaries that were not individually blacklisted.
In October, Beijing announced broad export restrictions on rare earths. The materials are essential to products ranging from automobiles to advanced military equipment.
Following negotiations between President Donald Trump and Chinese leader Xi Jinping, Washington suspended the Affiliates Rule for one year, while Beijing suspended its October rare-earth measures.
Both governments extended those suspensions this week.
On Nov. 9, the Commerce Department extended the suspension of the Affiliates Rule through Jan. 10, 2027.
China’s Commerce Ministry separately announced that several October 2025 export-control measures would remain suspended through the same date.
The proposed congressional legislation would not automatically restore the suspended Affiliates Rule. Instead, the bills seek additional controls on advanced AI chip exports, safeguards against unauthorized transfers, and restrictions on chipmaking equipment.
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