Sen. Jim Banks (R-Ind.) on Thursday called on Commerce Secretary Howard Lutnick to appear before the Senate Banking Committee, accusing him of exploiting a “loophole” in export controls that allowed advanced Nvidia chips to reach China. The demand comes amid revelations that former Nvidia CEO Jensen Huang had a relationship with an alleged Chinese spy, raising national security concerns.
“This news is as concerning as it gets,” Banks said during an appearance on Fox News. “When you’re in a war with another country, you don’t give them your best technologies. And that’s why lawmakers, for the last two years, have been pushing hard to stop our high-end computer chips from being exported to China.”
Banks, a member of the Senate Banking Committee, referenced the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN AI) Act, which he co-sponsored with Sen. Elizabeth Warren (D-Mass.). The bill would have required chipmakers like Nvidia to offer advanced AI chips to U.S. firms before selling to China or other countries of concern. Nvidia opposed the legislation in 2025, arguing it would stifle competition, according to Reuters.
“They [Nvidia] opposed other export control laws, and now we know that the Department of Commerce Secretary Lutnick, it appears, used loopholes to allow some of these chip sales to occur,” Banks continued. “Even though President Trump has directed his administration and the Department of Commerce not to allow that to happen.”
Banks emphasized the urgency of bringing both Huang and Lutnick before the committee. “So not only do I hope for Jensen Huang to come and testify, but I would like for Secretary Lutnick ASAP to come testify before the Senate Banking Committee,” he said. He added that senators from both parties have “questions and concerns about what’s happened over the last year that would allow some of these issues to continue to occur.”
The Commerce Department is a key agency overseeing export controls, particularly on AI chips. According to Axios, Lutnick received a classified memo about Huang’s affair and potential security risks. The memo, first reported by The New York Times, was drafted by Secretary of State Marco Rubio to warn about Huang’s relationship with Megaspeed executive Alice Huang.
The controversy has also drawn bipartisan scrutiny. Three senior Democrats on the House Foreign Affairs Committee sent a letter to Lutnick demanding answers and calling for a halt to advanced AI chip exports. “If Commerce was not briefed, we need to know why. If it was briefed, we need to know how it responded. And if the Department knowingly permitted these exports despite credible national-security concerns, the American people deserve an explanation,” they wrote.
The Commerce Department did not respond immediately to a request for comment from The Hill.
This latest development adds to the mounting pressure on Nvidia and the Trump administration over chip export policies. For more on the fallout, see Congressional scrutiny of Huang's relationship and Huang's resignation amid the affair. The situation has also affected Nvidia's stock, as shares recover amid the probe.
