NVIDIA (NVDA) Stock: White House Backs Chipmaker in China Export Fight

TLDR

• Trump administration officials are lobbying Congress to block the GAIN AI Act that would limit Nvidia’s chip exports to China.
• The legislation would force chipmakers to prioritize American buyers before selling to embargoed countries.
• A second bill, the SAFE Act, is under development to formalize current export restrictions for 30 months.
• Nvidia CEO Jensen Huang says China revenue forecasts are zero but wants to return to the market.
• Treasury Secretary Bessent hints Nvidia could sell older Blackwell chips to China in 12-24 months.

The Trump administration is working to defeat legislation that would restrict Nvidia’s ability to sell AI processors to China. White House officials are urging lawmakers to vote down the proposed measure.

NVIDIA Corporation, NVDA

The GAIN AI Act would create a new system for chip exports. Under this system, American companies would get first access to advanced AI chips. Only after domestic demand is met could chipmakers sell to China and other embargoed nations.

The bill represents bipartisan pushback against Trump’s openness to chip sales in China. Republican Senator Jim Banks and other lawmakers crafted the legislation with an “America first” approach.

Nvidia’s Lobbying Victory

White House opposition gives Nvidia a major win. The company has fought hard against any measures that would further restrict its global sales. Nvidia maintains that no U.S. customers currently face chip shortages.

The potential defeat of GAIN AI marks a loss for some tech giants. Microsoft and other hyperscalers supported the bill. They wanted guaranteed hardware access over Chinese competitors.

Lawmakers are still deciding whether to include GAIN AI in the annual defense bill. The measure’s future remains uncertain as Congressional discussions continue.

Second Bill Targets Export Controls

Congress hasn’t given up on China restrictions entirely. A separate piece of legislation is in the works called the SAFE Act of 2025.

This bill would legally require the Commerce Department to deny export applications for chips more powerful than currently allowed. The mandate would stay in effect for 30 months. The time limit acknowledges how quickly AI technology evolves.

Senator Chris Coons is spearheading the SAFE Act effort. The bill aims to codify existing export limits rather than create new ones.

Market Access Questions

The U.S. began controlling Nvidia’s China shipments in 2022 over military concerns. Washington has tightened these controls multiple times. Trump restricted H20 chip sales in April despite Nvidia designing them specifically for Chinese compliance.

Trump’s team later approved H20 sales in exchange for 15% of the revenue. The arrangement raised legal questions but hasn’t been formally codified. The president also floated the idea of allowing downgraded Blackwell chip sales to China.

Nvidia CEO Jensen Huang addressed the China situation Wednesday during a Bloomberg Television interview. He confirmed the company’s China revenue forecast sits at zero. However, Huang said Nvidia would welcome a chance to reengage the market with quality products.

Treasury Secretary Scott Bessent offered a potential timeline for future sales. He told CNBC that Nvidia might eventually sell Blackwell chips to China once they’re no longer top-tier. Bessent estimated this could happen in 12 to 24 months as newer chips replace Blackwell at the cutting edge.

China has discouraged domestic companies from buying even the chips currently permitted for sale. Beijing is pushing for complete self-reliance in AI technology development.

The Commerce Department oversees export approvals for restricted technology. Current rules require permission for advanced chip sales to roughly 40 countries, including Saudi Arabia and the UAE.

The post NVIDIA (NVDA) Stock: White House Backs Chipmaker in China Export Fight appeared first on Blockonomi.