US Lawmakers Unite Across Party Lines to Oppose NVIDIA's R&D Center Construction in China

"Serious Security Concerns Raised...
Fears of Information Leakage"

In a rare bipartisan move, both the Republican and Democratic parties in the United States have joined forces to oppose the development plans for NVIDIA’s research and development (R&D) center in Shanghai, China.

According to reports from the Wall Street Journal (WSJ) and Bloomberg on May 29 (local time), Republican Senator Jim Banks of Indiana and Democratic Senator Elizabeth Warren of Massachusetts recently sent a letter to Jensen Huang, CEO of NVIDIA.

Reuters Yonhap News

In the letter, they expressed concerns that the construction of the Shanghai R&D center "raises significant national security and economic security issues that require serious consideration." They also requested that NVIDIA provide information about the facility, including specific research and engineering projects, as well as financial incentives.

Previously, the Financial Times (FT) reported that NVIDIA is building an R&D center in Shanghai and plans to use it for future business expansion. The report also stated that NVIDIA had posted job openings for engineers in China in order to secure artificial intelligence (AI) talent.

NVIDIA responded by saying, "We are simply leasing new space because existing employees need a place to return to work after COVID-19," and added, "The scope of work will not change." The company also stated that it does not intend to provide advanced chip designs at the facility.

The two senators warned that sensitive information could be leaked, stolen, or otherwise transferred to China from the R&D center. They stated that NVIDIA’s innovation should take place within the territories of close democratic allies that share American values. They also requested that NVIDIA provide detailed information about the plans by June 20.

The WSJ analyzed that it is unusual for Senator Banks, a MAGA conservative and close ally of President Trump, to join forces with the progressive Senator Warren, noting that "concerns about China’s technology sector are among the most bipartisan issues in Washington."