On December 4, 2025, a bipartisan coalition of US senators, led by Republican Pete Ricketts and Democrat Chris Coons, introduced the Secure and Feasible Exports (SAFE) Chips Act in Washington, D.C. The legislation mandates that the US Department of Commerce deny export permits for advanced artificial intelligence (AI) semiconductors—including Nvidia’s H200 and its upcoming Blackwell chips—to buyers in China, Russia, Iran, and North Korea for the next 30 months. This bill aims to prevent the Trump administration from loosening existing restrictions on the sale of cutting-edge AI chips to Beijing, which lawmakers argue poses a direct threat to American national security and technological superiority.
Backing from key senators such as Tom Cotton, Dave McCormick, Jeanne Shaheen, and Andy Kim highlights the unusually strong bipartisan consensus opposing high-tech chip exports to China. The senators underscore the vital importance of maintaining the US lead in AI compute power and restricting China's access to advanced technology that could bolster its military and intelligence capabilities, including AI-driven weapons and surveillance systems.
The debate arises amid recent moves by the Commerce Department to briefly relax restrictions on Nvidia’s previous generation H20 chip exports, which Beijing de facto rejected in favor of domestic alternatives. The current executive branch led by U.S. President Donald Trump is reportedly considering allowing exports of the far more powerful H200 chip, significantly raising alarm among Congressional hawks who fear a strategic erosion of US dominance in AI hardware.
Critics argue that allowing these sales could embolden China’s AI development and military modernization, undermining America’s competitive edge in the rapidly evolving global technology race. The SAFE CHIPS Act seeks to codify existing UN schedules limiting such exports and requires a one-month Congressional notification period before any Commerce Department rule changes after the 30-month freeze.
Industry leaders present divergent views. Nvidia CEO Jensen Huang advocates for the ability to export top-tier chip technology to China, arguing that downgraded chips will not be accepted by Chinese customers and that open access promotes US jobs and technological leadership. Conversely, political figures including Senator John Kennedy and former White House strategist Steve Bannon have criticized Nvidia’s position, warning that any relaxation could jeopardize national security.
The legislation emerges as part of broader geopolitical and technological tensions between the United States and China, including disputes over rare earth mineral exports and cyber operations. The bill’s proponents emphasize that controlling AI chip exports is central to sustaining US leadership in AI innovation and preserving the geopolitical balance in the 21st century.
Looking ahead, if enacted, the SAFE CHIPS Act will likely harden export controls and force American semiconductor companies to navigate increasingly restrictive and politicized markets. It may also accelerate China’s pursuit of indigenous chip design and fabrication technologies to bypass US-imposed constraints, potentially intensifying semiconductor supply chain fragmentation.
Furthermore, this legislative push reflects an evolving US strategy under President Trump’s administration to recalibrate technology export policies in alignment with national security priorities while balancing economic and diplomatic considerations in the complex US-China relationship.
Given the strategic significance of AI chips in powering large-scale machine learning models, cloud computing infrastructure, and military applications, this bill signifies a critical attempt by the US Senate to preemptively curb China’s AI ambitions by controlling essential hardware components. The outcome will shape not only the future of semiconductor trade but also the broader digital technology competition between two leading global powers.
Explore more exclusive insights at nextfin.ai.
