US senators unveil bill to prevent easing of curbs on Nvidia chip sales to China

A bipartisan group of U.S. senators introduced the SAFE CHIPS Act, designed to prevent the Trump administration from relaxing export controls on advanced Nvidia and AMD AI chips to China. The law would force the Commerce Department to deny licenses for any advanced AI chip sales to China, Russia, Iran, or North Korea for 30 months. After that period, any proposed changes to the export rules would require advance notice to Congress, limiting presidential flexibility. This bill is unusual politically because it is supported by members of Trump’s own party, reflecting bipartisan concern that China could use top-tier American AI chips to strengthen its military, intelligence, and surveillance capabilities. Lawmakers fear that easing restrictions—such as allowing sales of Nvidia’s H200 chips—would give China a strategic advantage. The senators say maintaining strict controls is vital to U.S. national security. The proposal comes amid complex U.S.–China negotiations involving rare-earth metals, where China has threatened export restrictions. The Trump administration previously tightened and then loosened controls on Nvidia’s lower-tier H20 chips as part of these talks. Critics worry this back-and-forth undermines national security and signals unpredictability. Meanwhile, think-tank analysts argue that China is already trying to reduce its dependence on U.S. technology, and the U.S. must decide whether it wants to speed up or slow down China’s technological independence by allowing chip sales. How This Affects U.S. Manufacturers 1. AI chip makers (Nvidia, AMD) Lose access to one of their largest markets (China). Expect lower short-term revenue and potential supply-chain adjustments. May accelerate their push into U.S. government, defense, and data-center markets. 2. U.S. industrial and electronics manufacturers Could face higher costs if China retaliates with rare-earth metal restrictions. Electronics, EVs, robotics, and clean-tech sectors are especially vulnerable. 3. Semiconductor manufacturing inside the U.S. Likely to benefit in the long term: More political support Higher federal funding Growth of domestic fabs (Intel, TSMC Arizona, Samsung Texas) The U.S. may deepen its strategy of building a self-reliant chip ecosystem. 4. Defense, aerospace, and industrial-AI manufacturers Benefit from tighter controls because: They face less risk of technology leakage to China More government incentives may flow into secure AI and robotics manufacturing They become central to national-security planning