The Commerce Department's decision to permit NVIDIA to resume sales of its H20 AI chips to China raises concerns about U.S. leadership in technology. Initially banned by the Trump administration, NVIDIA adapted the chip to comply with Biden-era restrictions. Commerce Secretary Howard Lutnick stated that this decision relates to negotiations with China regarding rare earth minerals. Representative John Moolenaar warned that enhanced AI capabilities in China could pose a significant threat to U.S. national security, urging caution in technology transfers that could bolster China's military capabilities.
Commerce Secretary Howard Lutnick indicated that the decision to allow NVIDIA to resume sales of the H20 chip to China was part of negotiations with Beijing on rare earth minerals.
Rep. John Moolenaar expressed concerns that allowing sales of the H20 chip to China could enable the People's Republic of China's AI advancements, which might threaten U.S. national security.
Moolenaar stated that if U.S. technology is used to enhance China's military capabilities, it could lead to an American military defeat in the future.
He acknowledged that selling H20s to China could extend U.S. technology as the global standard and generate revenue for U.S. companies.
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