Nvidia Faces Bipartisan Pressure Over New China Facility Amid U.S.-China Tech Tensions

Nvidia CEO Jensen Huang has repeatedly highlighted that U.S. chip export controls aimed at China have failed and instead accelerated China’s independent chip development. Despite his efforts to convey this message, bipartisan U.S. lawmakers have recently turned their attention to Nvidia’s reported plans to open a new research and development facility in China.

On May 29, reports from Bloomberg and The Wall Street Journal revealed that Nvidia intends to establish a new R&D center in China. In response, Republican Senator Jim Banks of Indiana and Democratic Senator Elizabeth Warren of Massachusetts jointly sent a four-page bipartisan letter on May 28 to Huang, expressing serious concerns that the new facility could provide China access to advanced technology. They called for a detailed timeline and project plan by June 20, including specifics on research activities, engineering projects, and any financial incentives.

The senators characterized Nvidia’s plan as raising “significant national security and economic security concerns,” and criticized American companies for potentially enabling China to enhance its semiconductor capabilities. They emphasized that Nvidia, which has grown from American innovation and taxpayer-funded research, should not aid China in narrowing the artificial intelligence gap. Warren questioned whether Nvidia is prioritizing its business interests in China at the expense of U.S. leadership, security, and prosperity.

Further, the senators stressed that Nvidia’s innovations should be shared only with close allies that share U.S. values. They warned that the planned facility could undermine trust between Nvidia and Congress and create a “talent pipeline” benefiting China, citing reports of Nvidia recruiting engineers in China. Nvidia clarified in a statement that the company merely leased new office space for existing employees returning to work post-pandemic and that no advanced chip design activities would be conducted at the new location.

The Wall Street Journal noted Nvidia is navigating a complex landscape amid the U.S.-China tech rivalry, balancing export controls with market access in both countries. The bipartisan letter, noted by The Hill as an unusual coalition between a Trump ally and a progressive, underscores the broad congressional consensus on curbing China’s technological rise.

Jensen Huang has opposed export restrictions on China for some time. In March, he pointed out that nearly half of the world’s AI researchers come from China, many working in the U.S. In April, during a visit to China, he reiterated Nvidia’s commitment to serving the Chinese market within regulatory frameworks. He has urged the U.S. government to reconsider export rules, noting that China is not lagging in AI development.

In a May 19 interview, Huang described U.S. chip export controls as “costly,” estimating $15 billion in lost sales for Nvidia. He criticized the strategy of limiting AI technology to contain China as fundamentally flawed, warning that if U.S. companies do not compete in China, Chinese technology will spread globally.

China’s Ministry of Foreign Affairs spokesperson Lin Jian has condemned U.S. actions as politicizing and weaponizing trade and technology issues, escalating chip export restrictions, and coercing other countries to suppress China’s semiconductor industry. Lin warned these measures hinder global semiconductor development and will ultimately backfire.