Senate to investigate "admin scheme to take cut of illegal chip sales to China"

Senate Finance Committee Democrat Ron Wyden and House Ways and Means Committee Democrat Richard Neal are investigating the Trump administration’s reported approval of Nvidia AI-chip sales to Chinese companies with alleged ties to China’s government and military. They argue the administration used Section 232, a law intended to address imports that threaten U.S. national security, in a way that may instead have weakened national security and created an unconstitutional export tax. The lawmakers have asked the Commerce Department to preserve records as the inquiry proceeds.

Under the reported arrangement, advanced Nvidia chips made in Taiwan would first enter the United States for a security review and incur a 25% Section 232 tariff; Commerce would then license their export to Chinese buyers. The lawmakers say this approach raises questions about taxation, tariffs, and the administration’s use of trade authority. Their inquiry also follows reports that former Nvidia CEO Jensen Huang had a relationship with an alleged Chinese intelligence asset, and that President Trump and Commerce Secretary Howard Lutnick were briefed before export approvals were granted. Reports further say Commerce halted a probe into suspected chip smuggling after contact from Nvidia. Wyden and Neal seek records on the semiconductor investigation and tariffs, Nvidia’s export-license applications, and communications involving the company, Huang, or their representatives. They also cite at least $26 million in donations by Nvidia and Huang to Trump-backed projects.