According to Democratic lawmakers Richard Neal and Ron Wyden, Democrats on Thursday launched an inquiry into how the Trump administration handled Nvidia's chip sales to China, as the company ousted CEO Jensen Huang following his confession to an extramarital affair amid reports of a relationship with an alleged Chinese spy.
In a letter to Commerce Secretary Howard Lutnick, the lawmakers alleged an illegal arrangement where President Trump allowed Nvidia's H200 chips to be sold to China via Taiwan and first shipped to the U.S., after which Trump imposed a tariff that effectively gave the government a cut of sales. The inquiry also questions why the Commerce Department continued approving chip purchases by companies with suspected ties to China intelligence operations after Lutnick was informed of the allegations.