Probing DeepSeek’s Success, House Select Committee on China Opens Investigation into Nvidia

The United States is expanding its efforts to stymie the rise of China’s technology sector. On April 16, the House Select Committee on the Chinese Communist Party (CCP) opened an investigation into Nvidia’s sales across Asia after issuing a report claiming that DeepSeek had illicitly accessed the firm’s semiconductors to train its most advanced artificial intelligence (AI) models.

The investigation, which comes amid media reports that several members of DeepSeek’s research team had previous ties to the Chinese military, showcases Beijing’s efforts to integrate its civilian economy and defense industrial base in pursuit of its geopolitical ambitions.

China Select Committee Probes Ties Between Nvidia, DeepSeek, and China’s Military

In opening its investigation, the Select Committee cited a February Reuters report that Singaporean authorities had arrested three individuals for violating U.S. export controls, having allegedly sold advanced Nvidia chips to DeepSeek. The investigation follows the Commerce Department’s April 15 ban on the sale of Nvidia’s H20 chip to China, a move which prompted Nvidia CEO Jensen Huang to visit the firm’s Chinese clients, including DeepSeek’s founder, Liang Wenfeng.

The committee’s investigation also coincides with recent reporting on DeepSeek’s ties to the People’s Liberation Army (PLA) and the Chinese defense industrial base. An investigation conducted by risk analysis firm Exiger found that some of DeepSeek’s researchers had previous ties with PLA-affiliated laboratories, national defense universities, and entities under U.S. export restrictions.

China AI Sector Sees Continued Growth

The committee’s investigation comes as Beijing has ramped up its efforts to incorporate DeepSeek’s models into all facets of Chinese society, including key Chinese technology platforms. Chinese government officials have promoted the firm’s models to improve private sector productivity and counteract the country’s growing economic malaise. In accordance with Beijing’s policy of military-civil fusion, the PLA has also adopted the firm’s models within non-combat settings, such as military hospitals, while senior commanders have argued for its integration into command-and-control systems and other combat settings.

The United States has continuously worked to hamper the growth of China’s AI industry via a series of increasingly stringent export controls on key components. Beginning in October 2022, the Biden administration regularly updated restrictions on the sale of semiconductors and related manufacturing equipment to China, culminating in the release of the Framework for AI Diffusion in January 2024. Aimed at preventing Beijing from circumventing U.S. export controls, the framework limited countries’ capacity to purchase advanced semiconductors based on their efforts to limit diversion to China.

Washington Should Stymie China’s Technological Rise While Investing at Home

The United States must expand its domestic efforts to disrupt China’s AI sector. While the congressional investigation into Nvidia’s business practices remains ongoing, President Donald Trump should consider tasking the Defense Department with reviewing whether Washington should designate DeepSeek as a Chinese military company. The administration should also prioritize finalizing the AI Diffusion Rule to limit the risk of diversion of American AI innovations to China from neighboring countries.

Washington should pair these efforts with substantial investments in America’s AI industrial base. Congress should reverse cuts to the National Science Foundation and the National Institute of Standards and Technology, both of which play critical roles in domestic AI development. The Trump administration should also accelerate permitting reform to expedite the construction of data centers on federal lands. Finally, Washington should strengthen the capacity and resilience of the U.S. electrical grid.

Jack Burnham is a research analyst in the China Program at the Foundation for Defense of Democracies (FDD). Johanna (Jo) Yang is a research and editorial associate at the Center on Cyber and Technology Innovation (CCTI) at FDD, where she works on issues related to nation-state cyber threats, critical infrastructure protection, and U.S. cybersecurity policy. For more analysis from the authors, CCTI, and FDD’s China Program, please subscribe HERE. Follow Jack on X @JackBurnham802. Follow FDD on X @FDD and @FDD_CCTI. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.