US Lawmaker Hits at AI Chip Sales to China, Wants New 'Dynamic' Export Rules
After the U.S. government let some AMD and Nvidia AI chips go to Chinese groups, a main congress guy has stood up against this. In a clear note, John Moolenaar, who leads a House group on China, did not agree with this change and asked for a talk with the Commerce Department to think of new ways to handle exports.
The Main Point H20's Edge Over Chinese Options
The note says selling chips like Nvidia's H20 gives China a big tech edge. Moolenaar says the "H20 chip does much better than any chip from Chinese makers like Huawei right now." This edge shows a lot in areas like fast memory, key for AI tasks.
Even though the H20 is a smaller form of Nvidia's best H100, it does well in China because it's stronger than local options and works with Nvidia's top CUDA software, which Chinese firms use a lot.
A Wrong Measure for Export Rules
A big part of Moolenaar's worry is that U.S. rules use a bad measure. He thinks we shouldn't just look at top U.S. chips but compare the H20 with the best chip China can make on its own in big amounts. Since the H20 is much better, its sale boosts China's AI work.
He also voiced worries about U.S. tech being used in ways that break current rules, with talks of Tencent using H20s for big AI model work that could fit the idea of a banned supercomputer.
A Suggested Fix A 'Dynamic' Rule
Rather than just stopping sales, Moolenaar suggests a new plan: export rules should use a "dynamic standard that stays just ahead of what China can do." This would change the old way of using set U.S. tech levels.
This plan would let U.S. firms like Nvidia and AMD still fight with Chinese products, but stop Chinese groups from getting tech that lets them jump ahead on their own. This could also hold back China's rise in the AI tech and rules global scene.
Big Gap in Production and Big Risks
The note shows a huge gap in making chips. While U.S. groups look to put out over 14 million AI chips this year, a partner of China's Huawei may only make about 200,000 of its Ascend 910B chips. Selling a lot of H20 could help China close this gap and make strong AI models to take over global markets.
But there's a "catch": export limits on mass-made chips might not block China's military (PLA), which could use low-amount, high-power custom gear better than the limited U.S. chips.
Call for a Talk
Moolenaar wants a full briefing from the Commerce Department by August 8, 2025. He wants to know more about who gets licenses, how many chips ship, how risks are seen, and any new plans for AI export rules.
