Illustration: Sarah Grillo/Axios
China Select Committee Chair John Moolenaar is questioning the legality of President Trump's move to make money off of chip sales to China.
Why it matters: China hawks on the Hill are increasingly pushing back on the Trump administration's export control decisions, raising national security concerns.
What they're saying: "I am concerned by reports that the U.S. Government will be taking a cut of the proceeds from the sale of advanced H-20 and equivalent chips to China, and there are questions about the legal basis for doing so," Moolenaar (R-Mich.) said in a statement.
- "Export controls are a frontline defense in protecting our national security, and we should not set a precedent that incentivizes the Government to grant licenses to sell China technology that will enhance its AI capabilities."
Catch up quick: The White House this week confirmed the U.S. government would take a 15% cut of revenue made from Nvidia H20 and AMD's MI308 chip sales.
- Moolenaar previously raised objections in a July letter to Commerce Secretary Howard Lutnick.
- A bipartisan, bicameral bill called the Chip Security Act would prevent advanced chips from reaching China through smuggling and third countries, but hasn't been taken up in committee.
- Americans for Responsible Innovation has been pushing committee leaders to hold a hearing to investigate AI chip smuggling to China and whether Nvidia has done enough to stop it.
What's next: Congress is on recess, but lawmakers could hold hearings on this once they're back in September.
