Wyden and Neal Open Inquiry Into How Trump Officials Approved Nvidia Chip Sales to China

The letter, dated November 12, went out on the day Nvidia's board accepted Jensen Huang's resignation as chief executive. It is aimed at the administration as much as the company. The two lawmakers question whether the tariff arrangement that gave the US government a share of Nvidia's China revenue was legal. They also ask why the Commerce Department kept approving chip sales to Megaspeed, the Singapore-based Nvidia customer that US officials suspect of helping route advanced chips into China, and how Nvidia's donations to projects backed by President Donald Trump figured in the approval.

The inquiry opens a new front for Nvidia, now run by interim chief executive Colette Kress, and for the rules that govern its China business. By treating the arrangement as a tax question, the letter brings it within the reach of the committees that write US tax and trade law. TechCrunch noted that as members of the minority party, Wyden and Neal can ask questions but cannot compel answers. According to Common Dreams, both are in line to lead their committees in the next Congress.

The Tariff at Issue

The letter sets out what it calls a "scheme". Trump agreed that Nvidia could sell the H200, which is made in Taiwan, to Chinese buyers on condition that the chips were first shipped to the United States. A tariff was charged when they arrived. Common Dreams reported this was a 25% levy imposed under Section 232 national security powers, "effectively taking a cut of Nvidia's sales to China through what appears to be an unconstitutional export tax system," the letter said. The Commerce Department then issued the export licences. The lawmakers describe the structure as an "ostensible attempt to mask an unconstitutional export tax as a national security tariff action."

The principle of sharing revenue with the government was public. In August 2025, Nvidia and AMD agreed to give the US government 15% of their revenue from chip sales to China in return for export licences. Common Dreams' account of the letter says Trump allowed Nvidia to sell the H200 to China in December 2025.

Megaspeed and the Donations

The letter asks why Lutnick let Megaspeed keep buying chips after US intelligence reportedly told him of its suspicions about Alice Huang, a former Megaspeed executive, and about Jensen Huang's relationship with her. It also asks why the department reportedly approved purchases of Nvidia chips by other Asian companies "with no physical presence at their listed addresses." According to Common Dreams, the letter says Commerce stopped an investigation into Megaspeed after an Nvidia executive intervened. China has denied that Alice Huang is a spy.

On donations, TechCrunch reported that the letter places the export approval after Trump learned of "Mr. Huang's compromised position", and after Nvidia gave $26 million to Trump's projects, including the White House ballroom. Common Dreams put the donations at tens of millions of dollars without giving an exact figure.

This is the second congressional investigation since the reports about Alice Huang surfaced. Leaders of the House Select Committee on the Chinese Communist Party, the House Foreign Affairs Committee and the House Intelligence Committee, all Republican-led, had demanded that Huang testify in a closed session and threatened him with a subpoena. He agreed to appear on Thursday, after resigning. Separately, Senators Elizabeth Warren and Chris Coons have asked administration officials to preserve records on Nvidia's exports to China.

According to Bloomberg, as cited by Common Dreams, Huang's closed-door testimony is expected later this month. Nvidia reports quarterly results next week.