Democratic Gov. Josh Shapiro accuses President Donald Trump of giving China ‘a leg up over American entrepreneurs’ with decision to let Nvidia sell AI chips to Chinese companies
Pennsylvania Gov. Josh Shapiro used a keynote address in Pittsburgh to criticize the Donald Trump administration’s decision to allow Nvidia to seek licenses for certain advanced AI chips in China, arguing that the policy could weaken the United States’ position in the global AI race and give China “a leg up over American entrepreneurs.”
Speaking at the AI Horizons Summit, Shapiro said access to Nvidia’s H200 chips could give Chinese companies additional computing power as they compete with U.S. firms. His remarks came ahead of Trump’s planned September 24 meeting with Chinese President Xi Jinping at the White House, which Shapiro said should put AI policy high on the agenda.
Shapiro said the Trump administration is sending conflicting signals by seeking to maintain U.S. leadership in AI while allowing some advanced Nvidia chips to reach approved Chinese customers. He called the policy “a mistake,” according to Newsweek and argued that maintaining a technological lead should go hand in hand with efforts to establish international guardrails and safety standards.
The Democratic governor said competing with China and imposing AI safeguards are not mutually exclusive, arguing that the United States can pursue both technological leadership and rules for the development and use of advanced AI.
What Donald Trump approved and when
Shapiro was referring to a chip-export policy that took shape over several months. In December 2025, Trump announced that Nvidia would be allowed to sell its H200 processors to approved customers in China, with the United States receiving a 25% share tied to the sales.
The policy was formalized in January, when the Commerce Department’s Bureau of Industry and Security changed its review standard for certain advanced computing chips, including Nvidia’s H200, from a “presumption of denial” to case-by-case review. The policy applies only when exporters meet conditions involving U.S. supply, manufacturing capacity, recipient security procedures and third-party testing.
The H200 is significantly more powerful than the H20, the less-capable chip Nvidia developed for the Chinese market under earlier export restrictions. The H200 has been described as roughly six times more powerful than the H20.
The rollout remained limited. Nvidia disclosed in February that it had received a U.S. license to ship small quantities of H200 products to specific Chinese customers but had not yet generated revenue from the program. The company also said the chips would undergo inspections in the United States before shipment.
China later approved purchases by major technology companies including Alibaba and Tencent and more than 400,000 H200 chips had been approved for purchase by several Chinese firms. Actual shipments remained subject to additional Chinese restrictions and licensing requirements.
Nvidia has defended the policy. The company said allowing vetted and approved commercial customers to buy H200 chips would allow American industry to compete for business while supporting U.S. jobs and manufacturing.
Bipartisan concerns in Washington
Shapiro is not the only lawmaker to question the H200 policy. Republican Rep. Brian Mast, chair of the House Foreign Affairs Committee, has criticized the potential sale of advanced Nvidia chips to Chinese companies, describing the technology as “the cutting edge of warfare.” Mast has argued that allowing such chips to reach Chinese firms could create national-security risks.
Republican Rep. John Moolenaar, chair of the House Select Committee on China, has also opposed broader access to Nvidia’s most advanced chips.
Trump has drawn a distinction between the H200 and Nvidia’s newer Blackwell architecture. During his October 2025 meeting with Xi in South Korea, Trump said the two leaders discussed Nvidia’s access to China but that Blackwell specifically did not come up. Nvidia CEO Jensen Huang has also said the company has not sought U.S. licenses to sell Blackwell chips to China.
The debate over chip exports has unfolded alongside a broader dispute over how quickly the United States should develop advanced AI. On September 14, Trump spoke by phone with Huang during the All-In Summit and dismissed fears that AI could become uncontrollable as a “hoax.” Trump also argued that calls to slow AI development could undermine U.S. efforts to compete with China.
Anthropic CEO Dario Amodei also called for the industry to slow the pace of frontier AI development and strengthen safeguards. OpenAI CEO Sam Altman and Tesla CEO Elon Musk have expressed support for pacing frontier AI, although their positions do not necessarily match Amodei’s proposals in every detail.
The Donald Trump and Xi Jinping meeting ahead
The September 24 summit will be the second meeting this year between Trump and Xi, following Trump’s state visit to Beijing in May. The two leaders discussed a framework for what Xi described as a “constructive strategic stability” in U.S.-China relations, while the talks also produced Chinese commitments involving U.S. agricultural products and Boeing aircraft.
AI is expected to be among the issues discussed in Washington.
Shapiro said he wants AI policy and safety to receive substantive attention rather than being treated solely as a contest for technological dominance.
“This should be among the top items on President Trump’s meeting agenda,” Shapiro said, according to CNHI’s report on his keynote speech. He added that he hopes Trump will “leave the bluster and the showmanship at the door” and engage “responsibly” on the issue.
Shapiro also criticized the Trump administration’s broader foreign policy, saying it should “stop alienating our allies” and arguing that U.S. credibility abroad has been damaged.