China’s access to advanced U.S. artificial intelligence chips is facing renewed uncertainty as lawmakers in Washington build support for tighter export restrictions. The developments come after Jensen Huang’s departure as Nvidia’s chief executive intensified political scrutiny of the company’s China strategy, adding another layer of risk to the technology relationship between the world’s two largest economies.

Congressional Support for Chip Restrictions Grows

U.S. House Speaker Mike Johnson said there was growing consensus in Congress around limiting China’s access to advanced AI chips. Lawmakers from both parties have called for tougher controls, arguing that sophisticated processors could contribute to China’s development of advanced AI capabilities and potentially benefit its military.

The issue has gained momentum following Huang’s resignation after reports concerning his relationship with a Chinese businesswoman whom U.S. authorities suspect of spying for Beijing. Beijing has denied that the woman was a spy. The controversy has nevertheless intensified scrutiny of Nvidia’s exports and its relationships in the Chinese market.

Four Bills Could Expand the Export-Control Framework

Congressional Republicans are seeking to attach new AI-chip restrictions to the annual defense authorization bill, according to a Senate aide cited by Reuters. At least four separate bills have also gained momentum since Monday, potentially broadening the scope of restrictions beyond direct exports.

The proposed measures include the AI Overwatch Act, which would give Congress greater authority over advanced AI-chip exports, and the Chip Security Act, which would require companies to track the location of advanced AI processors to prevent smuggling. The Match Act would seek greater cooperation from U.S. allies on restrictions involving advanced chipmaking equipment, while the Remote Access Security Act would give the Commerce Department additional tools to prevent Chinese companies from accessing Nvidia processors through overseas data centers.

Chinese AI Stocks React Sharply

Financial markets quickly reflected the potential consequences. Chinese AI model companies Z.AI and MiniMax Group fell 12% and 8.4%, respectively, while data-center suppliers Zhongji Innolight and Eoptolink Technology each declined more than 8%.

The selling highlights the importance of access to advanced computing capacity for China’s rapidly developing AI industry. Reuters previously reported that some Chinese AI companies were seeking to rent Nvidia-powered computing capacity outside China amid concerns that Washington could further restrict remote access to the company’s processors.

Nvidia’s China Strategy Faces a New Test

Nvidia remains central to the dispute because its advanced AI processors are widely used to develop cutting-edge models. The United States has sought for years to limit China’s access to such technology, particularly because of concerns over potential military applications.

Huang’s departure could further weaken Nvidia’s influence in Washington and create additional momentum for legislation restricting advanced chip exports, according to analyst Sunny Cheung of the Jamestown Foundation. The company’s new leadership may also reassess its China strategy as it attempts to rebuild trust with U.S. policymakers.

Congressional scrutiny is expected to continue, with Huang separately expected to testify before Congress before November 26. Investors will be watching that testimony, the progress of the proposed legislation and the administration’s approach to export controls. Any expansion of restrictions could reshape Nvidia’s access to the Chinese market, accelerate China’s push for domestic computing alternatives and deepen the technological divide between Washington and Beijing.