NVIDIA Corporation (NVDA) Stock: White House Opposes Congressional Bill to Block China Chip Sales

TLDR

• The White House is urging Congress to reject the GAIN AI Act, which would restrict Nvidia and AMD from selling advanced AI chips to China and other embargoed nations.
• The proposed legislation would require chipmakers to prioritize U.S. customers before selling controlled chips overseas, but Nvidia argues no American customers face shortages.
• A separate bill called the SAFE Act is also being developed to codify existing chip export limits to China for 30 months.
• Nvidia CEO Jensen Huang stated the company’s revenue forecast for China is zero, though he expressed interest in reentering the market.
• Treasury Secretary Scott Bessent suggested the U.S. might allow Nvidia to sell Blackwell chips to China once they’re no longer the most advanced technology.

The Trump administration is asking members of Congress to vote against legislation that would restrict Nvidia’s ability to export AI chips to China. The move represents a win for the chipmaker, which has been fighting to maintain access to global markets.

NVIDIA Corporation, NVDA

The GAIN AI Act aims to create a system requiring chipmakers to serve American customers first before selling to China and other arms-embargoed countries. The bipartisan bill would effectively prevent Nvidia and AMD from selling their most advanced products to the Asian nation.

White House officials are leading the lobbying effort against the measure. Their opposition dims the chances of the bill passing. Lawmakers are currently debating whether to include GAIN AI in an annual defense bill.

Nvidia has publicly opposed the legislation. The company insists no U.S. customers are experiencing product shortages. If the bill fails, it would also represent a setback for some American tech companies like Microsoft that supported the measure.

Alternative Legislation in Development

Congress isn’t abandoning efforts to control chip exports to China. Lawmakers are working on a separate bill called the SAFE Act of 2025. This legislation would codify existing restrictions on AI chip sales to China.

The SAFE Act would require the Commerce Department to deny all export applications for chips more powerful than currently allowed models. The mandate would last for 30 months. The bill recognizes the fast-changing nature of AI hardware technology.

Senator Jim Banks sponsored the GAIN AI Act. Senator Chris Coons is leading efforts on the SAFE Act. Both bills show strong bipartisan support for limiting Beijing’s AI capabilities.

Export Controls and Market Access

The U.S. first restricted Nvidia chip shipments to China in 2022. Officials cited concerns about military applications of advanced AI technology. The controls have been tightened several times since then.

Trump restricted sales of Nvidia’s H20 chips in April. These chips were specifically designed for the Chinese market to comply with earlier restrictions. The U.S. also requires approval for advanced chip sales to about 40 other countries, including Saudi Arabia and the UAE.

Trump’s team has approved some chip sales to Gulf nations. They also approved H20 chip sales to China in exchange for a 15% revenue cut. The president suggested he might allow sales of downgraded Blackwell chips to China. This alarmed national security officials.

Trump later said he didn’t discuss Blackwell shipments with Chinese leader Xi Jinping. China has discouraged its companies from using even the AI chips currently permitted for sale.

Nvidia CEO Jensen Huang addressed the China situation in a Bloomberg Television interview Wednesday. He said the company’s revenue forecast for China is zero. Huang added that Nvidia would welcome the chance to reengage the Chinese market.

Treasury Secretary Scott Bessent told CNBC the U.S. might eventually allow Blackwell chip sales to China. He said this could happen once the chips are no longer cutting-edge technology. Bessent estimated this might occur in 12 to 24 months as Nvidia continues innovating.

The fate of both Congressional bills remains uncertain. The situation highlights Congress’s growing interest in semiconductor export policy. This policy area has become central to the tech and trade competition between Washington and Beijing.

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