The House committee advanced the Multilateral Alignment of Technology Controls on Hardware Act to impose stricter limits on shipments of advanced semiconductor manufacturing equipment, including lithography and deposition systems, to China. The move reflects an intensifying congressional push to safeguard AI chip technologies under national security authorities.

China’s Ministry of Commerce issued a stern warning that the proposed export restrictions could severely disrupt global semiconductor supply chains and pledged to safeguard domestic firms’ interests. Officials said they are closely monitoring legislative progress and preparing to assess its economic impact.

While no specific actions have been announced, China could respond with measures such as restricting exports of rare earth minerals or imposing reciprocal technology bans. These countermeasures would heighten trade tensions and risk a cycle of retaliatory regulations.

Nvidia relies on a complex global network of manufacturing tools and raw materials that could be constrained by U.S. export curbs and Chinese export controls. Supply chain partners and investors may encounter higher costs and delays in next-generation AI GPU production.