Pennsylvania Governor Josh Shapiro criticized President Donald Trump’s administration for allegedly assisting China in the artificial intelligence race. Speaking at the AI Horizons 2026 Summit in Pittsburgh, Shapiro called the sale of advanced chips to Chinese companies a mistake that undermines US leadership.

Shapiro argued that these actions contradict calls for the US to outpace China in AI development. He stated that real leadership requires keeping America ahead in innovation and urged Washington to stop alienating allies. The governor emphasized the need for international cooperation on responsible AI regulation and safety frameworks.

Nvidia Chip Shipments Under Scrutiny

The comments followed an August report indicating limited batches of Nvidia Corp. (NASDAQ: NVDA) H200 AI chips were shipped to China despite restrictions. Reports suggested Chinese tech giants ByteDance and Tencent Holdings Ltd. (OTC: TCEHY) received around 10,000 H200 processors each.

Nvidia CEO Jensen Huang is expected to attend a White House dinner during Xi Jinping’s visit to Washington on Sept. 24. The White House stated Trump invited prominent US business leaders to prioritize deals benefiting the US. Huang has maintained close ties with Trump, joining him on a May trip to China and attending a dinner hosted by the Chinese President.

Divergent Views on AI Regulation

Trump dismissed AI-safety concerns as a hoax, arguing existing government powers are sufficient. He warned that tighter regulations could weaken the US against China. In contrast, Shapiro called for tighter oversight of frontier AI models, greater transparency requirements, and independent evaluations before widespread deployment.

China’s People’s Daily accused the US of applying double standards to AI model distillation last week. It urged cooperation on AI risks and warned against turning the technology into a tool of great-power competition. Shapiro urged making AI a top agenda item when Trump meets with Xi Jinping next week.

What the Numbers Show

The disclosure that ByteDance and Tencent each received approximately 10,000 H200 processors highlights the scale of specific corporate access to restricted technology. This volume suggests that despite broad export controls, significant quantities of advanced hardware are reaching major Chinese tech firms, directly impacting the competitive landscape Shapiro described.

U.S. Vice President Vance stated that the United States recognises China as a competitor while also expressing a desire to build a positive relationship with the country.

US position on China relations

Vance's remarks reflect a dual-track stance, acknowledging competitive dynamics between the two nations while leaving room for constructive engagement. The statement underscores the complexity of the bilateral relationship, which spans trade, technology, and geopolitical interests.

The acknowledgment of China as a competitor signals that the U.S. maintains a clear-eyed assessment of its strategic position, even as it signals openness to dialogue and cooperation where interests may align.