China Export Controls Face Enforcement Scrutiny at House Hearing

US Commerce Department faced bipartisan congressional pressure over stalled China export controls and enforcement gaps, including disclosures that Nvidia H200 chips have begun shipping to China and that Blackwell chips obtained via smuggling may be permitted under May guidance. The department is requesting a $215 million budget increase to hire 300+ enforcement officers, but an eight-month freeze on entity list designations signals enforcement has taken a back seat to trade diplomacy. If you're selling AI chips or compute into China, the enforcement mechanism just broke in public. The administration wants enforcement money but froze the tool that actually stops sales—Congress now knows there's a loophole, and both parties will push to close it.