A bipartisan group of 23 US lawmakers from the Select Committee on China on 28 January alleged that advanced Nvidia chips exported to China are being used to boost Chinese military capabilities. In a post on X, the committee claimed that Nvidia's chips are “powering China's military” and called it a security failure by the US government. The lawmakers said Nvidia supplied chips to a Chinese firm, DeepkSeek AI, which “ended up supporting an AI model used by the People's Liberation Army (PLA)", raising concerns about military-civil fusion and cybersecurity risks.
The committee has written to the Department of Commerce and Commerce Secretary Howard Lutnick, arguing that “there's no such thing as a ‘purely civilian’ artificial intelligence (AI) company in China.”
“Nvidia's products were used by DeepSeek AI and ended up supporting an AI model used by the PLA (People's Liberation Army). Military-civil fusion is real, and we must protect our country’s technological advantage,” it added.
The letter added that “while Nvidia asserts its relationship with DeepSeek is to promote the AI ecosystem flywheel and improve Nvidia's products, documents produced to the Committee reveal Nvidia provided extensive technical support that enabled DeepSeek”.
They alleged that Nvidia's “extensive technical support that enabled DeepSeek” has been integrated into PLA systems and has demonstrated cybersecurity risk.
“These findings demonstrate why rigorous enforcement of the Department’s H200 export rule, which requires certification that chips will not serve military purposes, is essential—even if such enforcement effectively prevents H200 exports to the PRC altogether,” it added.
The letter also alleged that DeepSeek routes Americans' data to the Chinese government “through infrastructure tied to a US-designated Chinese military company”. It used a Jamestown Foundation report from October 2025, which cited PLA procurement documents to conclude that the Chinese military was using homegrown AI systems, including DeepSeek, and planned to integrate them across its operations.
It further called for measures “to prevent prohibited end users from gaining the type of access the PLA gained from DeepSeek”.
You can read the full letter in the post below:
Responding to queries, a spokesperson for California-based Nvidia told AFP, “China has more than enough domestic chips for all of its military applications, with millions to spare”, and that “it makes no sense for the Chinese military to depend on American technology. The administration's critics are unintentionally promoting the interests of foreign competitors,” it added.
A Financial Times report in mid-January cited sources as saying that suppliers of parts for Nvidia's much-hyped H200 chips paused production after Chinese customs officials blocked shipments of the AI processor into the country. One source said Nvidia was “caught by surprise”.
A week later, multiple reports said that Nvidia CEO Jensen Huang's annual Shanghai visit would be dual purpose this year and include detours to Beijing, Shenzhen and Taiwan.
Notably, US President Donald Trump approved Nvidia's sale of the H200 AI processors in China in December 2025, following months of lobbying from the company, Jensen Huang, and the AI sector stakeholders.
However, parts makers of essential components are now concerned that it is the Chinese authorities who will block shipments and later write them off down the line, the FT report added, citing two sources.
Huang has been gung-ho about the Chinese market and has lobbied hard with Washington and Beijing to get his H200 chips approved for sale. After US approval in December, the company pumped up production to meet an estimated over one million orders from Chinese clients, the source told FT.
The deliveries were planned for March, but now the fate remains suspended amid uncertainty from customs officials, the source added.
Chinese customs authorities reportedly told a logistics company in Shenzhen that Nvidia's H200 chips are not allowed into the country. They gave no reason for the block, nor was there an indication of whether this is a temporary step or a permanent ban. FT's sources said that domestic technology companies have been warned against buying Nvidia chips and told to prioritise domestic options instead.
Jocelyn Fernandes is a journalist and editor with 12+ years of experience covering business and the economy. She is the Chief Content Producer at Mint, where she publishes breaking news, explainers, features, and live blogs across a wide range of topics, including the Union Budget, corporate developments, stock markets, income tax, personal finance and money, cryptocurrency, government policy, the impact of US tariffs, and major international developments. Her focus is on delivering timely updates in an accurate, clear, and accessible format for readers. Jocelyn holds a Bachelor of Mass Media (BMM) and a Postgraduate Diploma (PGD) in Journalism and Communication. Markets disclaimer: The views and recommendations expressed are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult certified experts before making any investment decisions.