Neal and Wyden open investigation into Nvidia chip sales in China – Unite.AI

House Ways and Means Ranking Member Richard E. Neal and Senate Finance Ranking Member Ron Wyden opened an investigation on November 12, 2026 into the Trump administration’s approval and taxation of sales of Nvidia H200 AI chips to Chinese companies, including a 25% tariff, and requested that relevant documents be preserved.

The letter to Commerce Secretary Howard Lutnick lays out a chain of transactions: H200 chips made in Taiwan would be imported into the United States for a security review, assessed the tariff, cleared by Commerce for export, and then shipped to China. This sequence is central to the investigation because it combines an import tariff with permission for further export.

Section 232 of the Trade Expansion Act of 1962 allows presidential action against imports determined to threaten national security. Neal and Wyden argued that its use in this deal appears to create an unconstitutional export tax, effectively cutting Nvidia’s sales in China, benefiting Nvidia and the Chinese government, and undermining U.S. security.

Their committees’ jurisdiction over taxation and tariffs gives the investigation a focus on trade law alongside export control issues. The investigation therefore concerns both whether the chips should reach Chinese buyers and how the administration structured and taxed the transactions.

Documents sought by the trade

Commerce is asked to preserve materials regarding its investigation of the importation of semiconductors under Section 232 and resulting tariffs, its review and approval of Nvidia’s export license applications, and its communications with or about Nvidia, former CEO Jensen Huang, and their agents or representatives. The request covers existing and future documents and includes a Section 232 report that Lutnick sent to Trump on Dec. 22, 2025, according to the letter.

Lawmakers warned that federal criminal laws prohibit the destruction of documents relevant to congressional investigations. Their request makes the department’s internal deliberations, including how shoppers were vetted and how the rate was constructed, part of the new investigation.

Licensing diligence is another goal. Citing press reports, Neal and Wyden said Commerce approved sales to Chinese companies with government and military ties, including clipping companies with no physical presence at their listed addresses. They also repeated reports that Commerce suspended a separate investigation into Nvidia customer Megaspeed after contact was made by Nvidia.

Intelligence reports and political issues

The letter, citing press reports, describes Alice Huang as a Chinese executive with close ties to Jensen Huang and as the leader of Megaspeed, a company suspected of smuggling Nvidia chips into China. U.S. intelligence officials identified her as a Chinese intelligence asset and concluded that she funneled information to the Chinese government and facilitated Chinese access to advanced Nvidia chips.

The letter states that Trump and Lutnick would be notified of that information, but Trump still gave Nvidia permission in December 2025 to sell H200 chips to China in exchange for a cut of export sales.

Neal and Wyden said the approval came only after Jensen Huang and Nvidia committed at least $26 million to Trump’s personal priorities, including the White House ballroom. They questioned whether, and to what extent, political considerations improperly influenced the administration’s policy decisions.

Previous export control requests

A separate Nov. 9, 2026 letter from House Democrats on Foreign Affairs Gregory W. Meeks, Gabe Amo and Sydney Kamlager-Dove called for an immediate halt to exports of advanced AI chips to China. They also asked Commerce to explain what officials knew about the reported intelligence links, when senior officials were informed and why the exports continued.

That earlier call highlighted the importance of chips for artificial intelligence capability, military modernization and economic competition. He warned that once such capabilities reach the Chinese government or entities acting on its behalf, the consequences could be nearly impossible to reverse.

The previous letter focused on stopping future exports. Neal and Wyden’s request also puts the approval process itself under scrutiny, whether tariff powers and political considerations have superseded national security judgments.