National Security Experts Call for Nvidia H20 Sales Restriction to China

Concerns Raised Over Nvidia's H20 Chip Sales to China

Recent approval granted by the Trump administration allowing Nvidia to resume sales of its H20 advanced AI chips to China has sparked criticism from a group of national security experts.

Letter to Commerce Secretary

A coalition of 20 former government officials and national security specialists sent a letter to U.S. Department of Commerce secretary Howard Lutnick on Monday.

The letter urges a reversal of the decision permitting Nvidia to once again sell the H20 AI chips within the Chinese market.

Strategic Implications

The experts characterize the administration’s recent move as a “strategic misstep.”

They believe it will negatively impact the United States’ competitive advantage in Artificial Intelligence, affecting both military and civilian applications.

H20 Chip Capabilities

The letter specifically focuses on the H20’s capabilities in AI inference.

AI inference is the process by which a trained AI model applies its knowledge to new, unseen data to make predictions or decisions.

Performance and Export Controls

According to the letter, the H20 is a powerful tool for advancing China’s AI capabilities, and is not an obsolete chip.

It was engineered to circumvent export control limitations and is particularly effective for inference tasks.

The H20 is claimed to even surpass the performance of the H100 chip – a chip the administration previously restricted due to its advanced features – in inference applications.

Potential Negative Consequences

The signatories argue that allowing H20 sales will exacerbate the existing shortage of AI chips in the U.S.

They also express concerns that these chips could be utilized to bolster China’s military strength and undermine the effectiveness of existing chip export controls.

Reinforcing Previous Restrictions

The letter emphasizes that the initial decision to prohibit H20 exports was appropriate.

It requests that the administration uphold this principle and continue to block the sale of advanced AI chips to China to safeguard U.S. technological leadership.

The issue is framed not as a trade matter, but as one of national security.

Signatories and Background

Notable signatories include Matt Pottinger, former deputy national security adviser during Trump’s first term.

Stewart Baker, who previously served as assistant secretary of Homeland Security under George W. Bush, and David Feith, a former National Security Council member, also signed the letter.

Context of the Decision

This letter follows a decision made two weeks prior by the DOC to allow Nvidia to resume AI chip sales to China.

This decision was reportedly linked to ongoing trade negotiations with China concerning rare earth elements.

At the time, Lutnick attempted to minimize the significance of the decision, characterizing the H20 as Nvidia’s “fourth best” AI chip.

AI Action Plan

The Trump administration recently released its AI Action Plan.

The plan underscored the importance of U.S. AI chip export restrictions, but lacked specific details regarding the implementation of these controls.