Republican Lawmakers Urge U.S. Commerce Department to Close Loopholes Allowing Advanced Chips to Flow to Sanctioned Chinese Companies
Alina Collins
House China Committee Chair John Moolenaar wrote to the Commerce Department demanding strict enforcement of a chip-order screening rule — aimed at keeping advanced logic chips from reaching Huawei and other sanctioned firms through foundry channels. This means → Congress is now pressuring the Trump administration's looser export-control stance from both sides of the aisle.
What exactly does this letter demand?
Moolenaar wants Commerce to enforce a Biden-era rule from January 2025 requiring foundries to screen orders and verify end users before production.
This means → he sees the rule itself as adequate — the problem is enforcement, not design. A rule nobody polices is no rule at all.
The letter names Huawei and Sophgo directly, calling the regulation "designed to close the loophole these two exploited."
Why was this rule created in the first place?
Chips that Sophgo commissioned TSMC to manufacture were found inside AI processors sold by Huawei — a company under sweeping U.S. sanctions that should not have access to such chips.
In plain terms = Sophgo placed the order, TSMC made the chips, and the chips ended up at Huawei. The sanctions chain had a gap, and the foundry link did not catch it.
The Biden administration responded by requiring chipmakers to screen where their orders ultimately go, to prevent similar workarounds.
Why is the pressure coming now?
The Trump administration announced it does not intend to enforce a separate Biden-era chip regulation, raising concerns that enforcement of related rules would also soften.
Moolenaar warned that if foundries like TSMC conclude their chips fall outside the rule's scope, "it would significantly increase the risk of another Sophgo-type incident."
This reflects a now-public anxiety — within Congress and even within the Republican Party — over the Trump administration's more lenient posture on chip export controls.
Is Moolenaar the only one pushing?
No. Republican Senator Jim Banks co-signed a letter in June demanding tighter restrictions on foundries producing advanced AI chips for overseas subsidiaries of Chinese companies.
Republican Representative Bill Huizenga publicly criticized Commerce Department export-control official Jeffrey Kessler last month.
The Trump administration's decision to let Nvidia sell advanced AI chips to China drew criticism from both parties — This means → on chip controls, congressional pressure is now bipartisan.
What to watch next?
The Commerce Department, Huawei, Sophgo, and TSMC have all declined to comment — no side has shown its hand.
This means → the key question is whether sustained congressional pressure can push the Trump administration to shift from loosening to tightening chip export controls.
In plain terms = the rule already exists. The fight is over whether anyone enforces it and who holds the enforcers accountable — this letter is Congress forcing the executive branch to take a position.
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