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Elizabeth Warren Says Trump And Lutnick Need To Answer Why They Are 'Selling Out' US Security By Letting China Have Nvidia AI Chips
After President Donald Trump confirmed that Nvidia Corp (NASDAQ:NVDA) will be allowed to ship its H200 AI chips to approved customers in China, the political backlash has intensified.
Warren Accuses Trump Of Undermining National Security
On Tuesday, Sen. Elizabeth Warren (D-Mass.) took to X and criticized Trump's decision, arguing that allowing Nvidia's H200 chips into China contradicts both U.S. intelligence warnings and the Justice Department's own findings.
"His own DOJ called these chips ‘building blocks of AI superiority' … Trump and Lutnick need to answer to Congress on why they are selling out US security," she wrote.
The approval applies to Nvidia's H200 chips and not its more advanced Blackwell or future Rubin processors, which remain restricted to the U.S. market.
Bipartisan Voices Warn Policy Will Help China
Former Rep. Tom Malinowski (D-N.J.) said the administration's stance makes no sense.
He argued that Trump rejects AI safeguards by stating they would slow the U.S. down, then turns around and lets Nvidia sell "advanced AI chips to China that will help it win the race."
Former Republican presidential contender Nikki Haley echoed the warning, saying ending restrictions on powerful AI chips "will backfire" and risk "costing America more than we gain financially."
Sen. Chuck Schumer (D-N.Y.) said Trump "can't claim to be ‘tough on China'" while authorizing access to some of the world's most advanced semiconductors.
"This is classic Donald Trump: He's so desperate for his photo op with President Xi, that he will sell out America's long-term security," he said on X.
Smuggling Arrests Intensify Scrutiny
The backlash comes after federal prosecutors revealed two separate criminal cases involving illegal efforts to move Nvidia chips into China.
In one case, two Chinese nationals were arrested for allegedly smuggling restricted Nvidia hardware. In another case, two Americans and two Chinese nationals were charged with routing banned AI chips through Malaysia between late 2024 and early 2025.
Meanwhile, the Financial Times reported that Beijing is considering restricting access to Nvidia's H200 chips by requiring buyers to seek approval and justify why Chinese alternatives can't meet their needs.
Nvidia is up 33.74% so far this year. Benzinga's Edge Stock Rankings place it in the 97th percentile for Growth and the 92nd for Quality — highlighting the company's strong competitive performance.
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Photo Courtesy: David Garcia on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.