On Thursday, Senate Minority Leader Chuck Schumer (D-N.Y.) criticized President Donald Trump's approval of Nvidia Corp's (NASDAQ:NVDA) H200 AI chip sales to major Chinese firms.



<h2>Trump's Nvidia China Chip Strategy Faces Fierce Political Backlash</h2>



In a post on X, Schumer accused Trump of advancing a risky policy by allowing advanced U.S. semiconductor exports to Chinese companies allegedly connected to Beijing's military ambitions.



&#34;Giving China access to this premier US technology is dangerous and threatens our lead in the AI race that will shape the global economy for decades,&#34; Schumer wrote on X.



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<blockquote>Trump's moving forward with his plan to sell AI chips to Chinese companies linked to the Chinese military. Giving China access to this premier US technology is dangerous and threatens our lead in the AI race that will shape the global economy for decades.— Chuck Schumer (@SenSchumer) May 14, 2026</blockquote>
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According to reports, the Commerce Department approved export licenses for roughly 10 Chinese companies, including Alibaba Group Holding Ltd. ADR (NYSE:BABA), Tencent Holdings ADR (OTC:TCEHY), ByteDance and JD.com Inc. (NASDAQ:JD), as well as distributors such as Lenovo Group Ltd. (OTC:LNVGY) and Foxconn Technology Co. Ltd. (OTC:FXCOF), permitting purchases of up to 75,000 Nvidia H200 chips each.



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<h2>Beijing Blocks Nvidia H200 Deliveries Despite US Approval</h2>



Despite U.S. clearance, no shipments have occurred because Chinese authorities have reportedly discouraged domestic firms from proceeding, prioritizing homegrown AI chipmakers like Huawei Technologies.



Commerce Secretary Howard Lutnick said China's government &#34;has not let them, as of yet, buy the chips,&#34; citing Beijing's efforts to strengthen its domestic semiconductor industry.



The Trump-brokered arrangement also includes a 25% revenue-sharing requirement for the U.S., adding another layer of geopolitical friction.



<h2>National Security Concerns Intensify Over US-China AI Competition</h2>



Chris McGuire of the Council on Foreign Relations said, &#34;It is remarkable that President Trump keeps getting convinced to put Nvidia's interest ahead of America's.&#34;



Sen. Chris Coons (D-Del) earlier this month pressed the Commerce Department for answers on export approvals and potential national security implications.



Meanwhile, some analysts contend that controlled chip sales could preserve U.S. leverage while slowing China's push toward complete technological independence.



Previously, Nvidia CEO Jensen Huang warned that viewing China only as a rival in the AI race could weaken international cooperation and potentially damage long-term U.S. interests.



Trump reportedly made an 11th-hour personal push for Huang to join his China delegation despite concerns his presence could intensify scrutiny over U.S. chip exports to Beijing.



Price Action: Nvidia shares closed Thursday at $235.74, up 4.39% and rose another 0.90% to $237.87 in after-hours trading, according to Benzinga Pro.



According to Benzinga Edge Rankings, Nvidia ranks in the 98th percentile for Growth, reflecting strong performance across short, medium and long-term time frames.



<figure class="wp-block-image size-full"><img src="https://imageproxy.pbkrs.com/https://editorial-assets.benzinga.com/wp-content/uploads/2026/05/15002642/Screenshot-2026-05-15-at-9.55.06%E2%80%AFAM.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://editorial-assets.benzinga.com/wp-content/uploads/2026/05/15002642/Screenshot-2026-05-15-at-9.55.06%E2%80%AFAM.png"/></figure>



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



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Photo Courtesy: Consolidated News Photos on Shutterstock.com

President Trump concludes his three-day visit to China today. During the visit, the U.S. Department of Commerce authorized the export of the H200 chip to China; ten Chinese companies—including Alibaba, Tencent, ByteDance, and JD.com—received procurement licenses, delivering a major boost to the AI ​​computing power supply chain. Which of these beneficiary stocks are you most bullish on?

President Trump concludes his three-day visit to China today. During the visit, the U.S. Department of Commerce authorized the export of the H200 chip to China; ten Chinese companies—including Alibaba, Tencent, ByteDance, and JD.com—received procurement licenses, delivering a major boost to the AI ​​computing power supply chain. Which of these beneficiary stocks are you most bullish on?

Trump wraps up China visit — H200 export ban lifted

TCEHY

BABA

TCTZF

KBAB

BABO

BABX

Senate Minority Leader Chuck Schumer criticized President Trump's approval of Nvidia's H200 AI chip sales to Chinese firms, warning it could jeopardize U.S. AI dominance and national security. Despite U.S. export licenses for companies like Alibaba and Tencent, no shipments have occurred due to Chinese government discouragement. Schumer emphasized that allowing access to advanced U.S. technology is dangerous, while some analysts argue controlled sales could maintain U.S. leverage in the tech race.

- Senate Minority Leader Chuck Schumer criticized President Trump's approval of Nvidia's H200 AI chip sales to Chinese firms due to national security concerns.  
- The Commerce Department granted licenses to approximately 10 Chinese companies, allowing the purchase of up to 75,000 chips, but shipments have not occurred as Chinese authorities prefer domestic manufacturers.  
- Industry experts express concern that this policy could undermine U.S. technological leadership in AI while others argue controlled sales might maintain some leverage over China’s technological advancement.

Chuck Schumer Says Trump's Plan To Sell AI Chips To Military-Linked Chinese Firms Is 'Dangerous' As Trump Clears H200 Sales To Alibaba, Tencent