House China Panel chair Moolenaar urges Trump to tighten AI chip export controls on China

Rep. John Moolenaar, the Michigan Republican who chairs the House Select Committee on the Chinese Communist Party, sent a letter to Commerce Department official Jeffrey Kessler urging the Trump administration to strictly enforce a Biden-era "foundry rule" on AI chip exports to China, citing the case of Sophgo chips found inside Huawei AI products. Moolenaar also introduced the SCALE Act, which would set a rolling technical threshold limiting US-exported chips to no more than 110% superior to China's domestically manufactured chips, and has backed proposals to cap China's total AI computing power at no more than 10% of US capabilities. The push follows the Trump administration's approval of certain Nvidia chips, including the H200, for export to China, a decision Moolenaar says undermines the export-control architecture.

House China Panel chair Moolenaar urges Trump to tighten AI chip export controls on China The Republican congressman wants the Commerce Department to close loopholes that let sanctioned Chinese firms like Huawei get their hands on advanced semiconductors Rep. John Moolenaar, the Michigan Republican who chairs the House Select Committee on the Chinese Communist Party, is pressing the Trump administration to stop dragging its feet on AI chip export controls. In a letter sent to Commerce Department official Jeffrey Kessler, Moolenaar called for strict enforcement of a Biden-era “foundry rule” designed to choke off the supply of high-end logic chips to Chinese entities that shouldn’t be getting them. The loophole problem Moolenaar’s frustration centers on a specific, well-documented failure. Chips manufactured by Sophgo were previously discovered inside Huawei AI products, despite Huawei being one of the most heavily sanctioned technology companies on the planet. The foundry rule was designed to address exactly this kind of gap. It targets the relationship between chip fabrication plants and untrusted Chinese end-users, aiming to ensure that companies like TSMC aren’t inadvertently or otherwise funneling advanced semiconductors to firms on the restricted list. Moolenaar’s letter specifically flagged the risk that without proper enforcement, the TSMC-Sophgo-Huawei pipeline could repeat itself. The Trump administration previously approved certain Nvidia https://cryptobriefing.com/markets/nvidia/ chips, including the H200, for export to China. Moolenaar’s position is that approval decisions like the H200 clearance undermine the entire architecture of export controls. The SCALE Act: a moving target approach Beyond enforcement of existing rules, Moolenaar has introduced legislation that would fundamentally change how the US thinks about chip export restrictions. The SCALE Act proposes a “rolling technical threshold,” tying export limits to China’s own domestic chip production capabilities. Under the proposed framework, US-exported chips could be no more than 110% superior to what Chinese companies can manufacture domestically. Macro, rates, and crypto—what moved markets and what matters next. Daily. Free. Join 34,000+ readers across crypto, finance, and policy. Moolenaar has also backed proposals to cap China’s total AI computing power at no more than 10% of US capabilities. Bipartisan anxiety over China’s AI progress There is bipartisan concern on Capitol Hill about how quickly Chinese AI capabilities have advanced, particularly given evidence that much of that progress has been fueled by chips that were smuggled, proxy-sourced, or acquired through supply chain workarounds. Chinese firms have proven adept at stockpiling chips before restrictions take effect, sourcing them through intermediaries in third countries, and in some cases developing domestic alternatives that narrow the gap. Nvidia has consistently lobbied for a more targeted approach, arguing that blanket restrictions hurt American companies more than they hurt Chinese AI development. The H200 approval was widely seen as a win for that perspective. Moolenaar’s letter is an attempt to shift the balance back toward restriction. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .