Bipartisan senators introduce SAFE CHIPS Act to block easing curbs on AI chip sales to China

Reviewed byNidhi Govil

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A bipartisan group of U.S. senators has unveiled the SAFE CHIPS Act to prevent the Trump administration from loosening restrictions on advanced AI chip exports to China for 30 months. The legislation targets Nvidia and AMD chip sales, requiring the Commerce Department to deny license requests from China, Russia, Iran, and North Korea. The move reflects growing national security concerns as the Trump administration reportedly considers approving sales of Nvidia's H200 chips to Beijing.

Bipartisan senators target AI chip sales to China with new legislation

A bipartisan group of U.S. senators has introduced legislation designed to prevent the Trump administration from easing curbs on AI chip sales to China for the next 30 months

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. The SAFE CHIPS Act, filed by Republican Senator Pete Ricketts and Democrat Chris Coons, represents a rare effort where Trump's own party members are working to constrain his administration's approach to tech export restrictions

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. Co-sponsors include prominent Republican China hawk Tom Cotton, along with Republican Dave McCormick and Democrats Jeanne Shaheen and Andy Kim.

Source: Market Screener

Source: Market Screener

How the SAFE CHIPS Act would restrict export controls

The legislation would require the Commerce Department, which oversees export controls, to deny any license requests for buyers in China, Russia, Iran, or North Korea seeking to receive advanced artificial intelligence chips more sophisticated than those currently permitted

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. This 30-month freeze specifically targets Nvidia chip sales to China and those from AMD, Nvidia's rival that is also eager to access the Chinese market

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. After the initial period expires, Commerce would be required to brief Congress on any proposed rule changes a full month before they take effect, ensuring legislative oversight.

Source: ET

Source: ET

National security concerns drive legislative push

"Denying Beijing access to the best American AI chips is essential to our national security," Ricketts stated

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. China hawks in Washington fear that Beijing could use these prized chips to enhance military capabilities through AI-powered weapons and develop more powerful intelligence and surveillance capabilities

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. The timing proves critical as the Trump administration reportedly mulls greenlighting sales of Nvidia's H200 artificial intelligence chips to China

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Trump administration's shifting approach to China tech exports

The Trump administration's Commerce Department has already imposed and then rolled back curbs on Nvidia's H20 AI chips, drawing criticism from Republican Representative John Moolenaar, who chairs the House China Select Committee

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. These moves came as part of negotiations with China to delay its own export curbs on rare earth metals that global tech companies depend on. Trump pushed back by a year a rule restricting U.S. tech exports to units of already-blacklisted Chinese companies and has vowed to eliminate a Biden-era rule restricting AI chip exports globally to countries based partly on concerns around chip smuggling to China

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Expert analysis on America's technological advantage

Greg Allen, a senior adviser at the Center for Strategic and International Studies, a Washington, D.C.-based think tank, called the bill a common-sense measure that should be passed urgently

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. He noted that the United States cannot dissuade China from seeking to swiftly end its reliance on U.S. technology. "The only choice for America is whether or not we should sell China the technology to make their decoupling strategy fast and convenient," Allen said

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. This perspective highlights the long-term implications of maintaining America's technological advantage while Beijing actively works to reduce its dependence on U.S. semiconductor technology.

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