- U.S. lawmakers accuse Nvidia of aiding China's military, alleging chips sold to AI firm DeepSeek AI ended up supporting a model used by the People's Liberation Army (PLA).
- The bipartisan Select Committee on China demands strict export enforcement, even if it means halting all H200 chip sales to China, framing the issue as a critical national security failure.
- Chinese customs has unexpectedly blocked shipments of the newly approved H200 processors, creating a new obstacle for Nvidia despite having U.S. export clearance.
- Nvidia is caught in a geopolitical crossfire, needing to assure U.S. officials its tech isn't a security threat while convincing China its chips are still essential, even as local competitors gain market share.
- CEO Jensen Huang's diplomatic visit to China coincides with the crisis, highlighting the intense pressure on Nvidia as it becomes a focal point in the tech decoupling between the U.S. and China.
In a dramatic escalation of the tech cold war, Nvidia finds itself simultaneously battling U.S. national security hawks and Chinese customs officials, as its coveted artificial intelligence chips become the focal point of intensifying geopolitical strife.
A bipartisan group of 23 U.S. lawmakers from the powerful Select Committee on China has launched a direct accusation: Nvidia's advanced technology is "powering China's military." The allegation, detailed in a letter to the U.S. Department of Commerce dated January 28, 2026, claims a specific and troubling pipeline. The committee asserts that chips supplied by Nvidia to the Chinese AI firm DeepSeek AI "ended up supporting an AI model used by the People's Liberation Army (PLA)."
The lawmakers framed this as a critical security failure, arguing it validates long-held fears about China's military-civil fusion strategy. "There's no such thing as a 'purely civilian' artificial intelligence (AI) company in China," the committee's letter states. It further alleges that Nvidia provided "extensive technical support that enabled DeepSeek," which was later integrated into PLA systems, posing a cybersecurity risk.
The committee's demand is stark: rigorous enforcement of export rules, even if it "effectively prevents H200 exports to the PRC altogether." These fiery accusations on Capitol Hill collide directly with the delicate diplomatic mission of Nvidia’s founder and CEO, Jensen Huang. Even as the committee published its letter, Huang was in the midst of a high-stakes tour through Beijing, Shenzhen and Taiwan, aimed at reinforcing Nvidia's commitment to the massive Chinese market.
Nvidia: It makes no sense for the Chinese military to depend on American technology
The urgency of Huang's visit is underscored by a new, unexpected obstacle. Despite securing hard-won U.S. government approval in December 2025 to sell its H200 AI processors in China, Nvidia now faces a blockade from Chinese customs. According to a Financial Times report, shipments of the H200 chips have been paused after Chinese customs officials blocked their entry, reportedly catching Nvidia "by surprise." As noted by BrightU.AI's Enoch, "H200 is NVIDIA's next-generation AI processor, succeeding the H100, featuring enhanced memory bandwidth and capacity to accelerate inference and training for large language models. It is designed to deliver significantly higher performance for complex AI workloads."
The rationale remains unclear, but sources indicate domestic technology companies have been warned to prioritize local chips over Nvidia’s. This move aligns with Huang’s own recent observations about the rapid rise of Chinese competitors. He previously noted that U.S. export controls have accelerated local innovation, causing Nvidia’s market share in China to plummet from 95% to 50%. "The rest is Chinese technology. They have a lot of local technology they would use if they didn't have Nvidia," Huang observed. "Chinese AI researchers will use their own chips. They will use the second-best."
Nvidia's response to the military allegations was swift and pointed. A company spokesperson countered, "China has more than enough domestic chips for all of its military applications, with millions to spare," adding that "it makes no sense for the Chinese military to depend on American technology. The administration's critics are unintentionally promoting the interests of foreign competitors."
The simultaneous pressures from both Washington and Beijing place Nvidia in an nearly impossible bind. It must convince U.S. lawmakers that its products do not threaten national security, while also persuading Chinese authorities that its chips, now legally approved for sale, remain essential and welcome, even as China fervently builds its own alternatives. The outcome of this high-wire act will resonate far beyond Nvidia's balance sheet. It is a live test of whether the world's most critical technology can be bifurcated along geopolitical lines and whether any company, no matter how dominant, can navigate the deepening chasm between the two superpowers.
Watch this video about how Nvidia changed the world with its surprising announcement.
This video is from Rick Langley's channel on Brighteon.com.
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