Elizabeth Warren, ranking member of the U.S. Senate Committee on Banking, Housing and Urban Affairs, and Andy Kim, ranking member of its National Security and International Trade and Finance Subcommittee, issued a statement arguing that the Trump Administration’s failure to update export control regulations over the past year and a half may have allowed the most advanced U.S. artificial intelligence chips to flow to companies headquartered in China, potentially supporting China’s military capabilities. They said the Commerce Department could close the loophole immediately by issuing clear and comprehensive guidance, and called for Secretary Howard Lutnick to testify before the Senate Banking Committee over what they described as mismanagement of the Bureau of Industry and Security and the resulting national security risk.
U.S. Senate Committee on Banking, Housing and Urban Affairs2026-06-01
U.S. Senate Committee on Banking Housing and Urban Affairs ranking members call for Commerce Department action on AI chip export control loophole
The ranking members of the U.S. Senate Committee on Banking, Housing and Urban Affairs and its National Security and International Trade and Finance Subcommittee warned that the Trump Administration’s failure to update export control regulations may have allowed advanced U.S. artificial intelligence chips to reach China-based companies, potentially supporting China’s military. They urged the U.S. Department of Commerce to close this loophole through clear guidance and called for Secretary Howard Lutnick to testify on alleged mismanagement of the Bureau of Industry and Security.