Democrats blast Lutnick for reversal on China, semiconductors
In a letter to Lutnick on Sunday, Reps. Raja Krishnamoorthi (D-Ill.) and Gregory Meeks (D-N.Y.) said the administration was using export controls on semiconductors and advanced computer parts as a 'bargaining chip,' a move they contended 'risks eroding the credibility of our export controls regime, blurs the line between economic and security priorities, and sends a dangerous signal that critical guardrails are up for negotiation.'
The White House announced in May that it would restrict sales to China of Nvidia's H20 chip, widely used on artificial intelligence (AI) models. But in mid-July, it changed course, with Lutnick telling CNBC the reversal was linked to a trade deal involving rare earth magnets.
Administration officials including Treasury Secretary Scott Bessent are in Stockholm this week for trade talks with China aimed at extending a shaky truce on tariffs between the two countries. Lutnick was not in Stockholm for the first day of the talks Monday, Bloomberg reported.
The letter from Krishnamoorthi and Meeks was followed by another message from a group of five Democratic senators to Lutnick on Monday, calling the administration's position on semiconductors 'extremely troubling.'
China's 'development of advanced Al capabilities represents a clear risk to the United States' national and economic security,' Democratic Sens. Mark Warner (Va.), Jack Reed (R.I.), Elizabeth Warren (Mass.), Chuck Schumer (N.Y.) and Chris Coons (Del.) wrote. 'We urge you to swiftly reverse course on these ill-advised actions and protect American advantages across the compute stack.'
The tussle over computing chips comes after the White House unveiled an artificial intelligence action plan last week aimed at scaling up American investments and innovation in the industry, with an eye on competing with China.
Lutnick also faced questions from Republican lawmakers last week over AI chip exports after the White House rescinded a Biden-era control on chip sales worldwide.
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