The head of a House of Representatives panel on China told U.S. Commerce Secretary Howard Lutnick that resuming sales of Nvidia's H20 chips to China threatens to advance Beijing's AI capability, stepping up his criticism of the decision and saying the original ban was "the right call.

Although companies are developing in-house AI chips, ecosystems not yet mature to fully replace NVIDIA’s advantages in system-level integration, computational efficiency

That message appears to have resonated in Washington. Nvidia confirmed last week that it had received US government approval to resume H20 sales to China. While Nvidia is poised to benefit financially, US officials say the move also serves national interests.