Democratic Senators Elizabeth Warren and Andy Kim on Monday slammed the Trump administration for potentially allowing advanced American AI chips to be sent to overseas units of Chinese firms, and called on Commerce Secretary Howard Lutnick to testify to Congress on the issue, according to a statement.In a surprise move, the Department of Commerce, which oversees US exports, on Sunday issued guidance to close a potential loophole that may have led companies to export the world’s most advanced chips - such as Nvidia’s most sophisticated Blackwell processors - to subsidiaries of Chinese companies located outside China.“On Sunday afternoon, the Trump Administration revealed that its failure to update export control regulations over the last year and a half may have inadvertently allowed America’s most advanced AI chips to flow to companies headquartered in China, potentially fuelling China’s military capabilities,” said Warren of Massachusetts, who also serves as ranking member of the Senate Banking Committee.“Secretary Howard Lutnick should testify before the Senate Banking Committee about how his reckless mismanagement of the Commerce Department’s Bureau of Industry and Security is putting our national security at risk.”The Commerce Department did not immediately respond to a request for comment.
Senators blast Trump over export of AI chips to overseas units of Chinese firms
Elizabeth Warren called on the commerce secretary to testify on the issue amid concerns over fuelling China’s military capabilities.
Commerce Department oversight allowed Nvidia Blackwell exports to Chinese subsidiaries until Sunday's guidance closed the loophole. Regulatory failure signals critical gaps in AI export governance, risking military tech transfer and exposing Commerce leadership accountability.














