White House economic adviser Kevin Hassett said the administration "wants China buying our chips," underscoring support for continued exports of Nvidia’s H20 processors and warning that Washington does not want Beijing to set the global standard for AI hardware. In practice, shipments remain frozen. Turmoil at the Commerce Department’s Bureau of Industry and Security has left thousands of export-license applications in limbo, Reuters reported, calling the backlog the worst in more than three decades. The holdup includes licenses for Nvidia’s H20, putting billions of dollars in potential orders on hold despite an earlier policy green-light. Beijing is simultaneously tightening scrutiny. The Cyberspace Administration of China summoned Nvidia to address concerns that the H20 could contain backdoor security risks, and state-owned People’s Daily said the company must produce "convincing security proofs" to regain trust. China generated about 13 percent of Nvidia’s revenue last fiscal year, heightening the stakes of the investigation. Political pressure in Washington is also building. The House Select Committee on the Chinese Communist Party asked the Commerce Department to block H20 sales, citing evidence the People’s Liberation Army seeks the chips for systems ranging from DeepSeek-R1 super-computing to robot dogs. Investors are watching the cross-currents closely; Nvidia shares were down roughly 6.5 percent from their weekly high on 1 Aug as regulatory uncertainty on both sides of the Pacific deepened.