Bipartisan Act Targets China’s Theft of Advanced AI Chips

Bipartisan Legislation Aims to Prevent U.S. AI Chips from Falling into the Wrong Hands

A new piece of legislation has been introduced in the U.S. Congress, aiming to prevent advanced artificial intelligence (AI) chips from being used by adversaries. The Chip Security Act, a bipartisan initiative, is designed to address growing concerns about the unauthorized transfer of American technology to countries like China. This effort comes after reports revealed that U.S.-origin chips have found their way into the hands of the Chinese Communist Party (CCP) through complex networks of shell companies.

The bill was introduced by several lawmakers, including House Select Committee on China Chairman John Moolenaar (R-MI), Ranking Member Raja Krishnamoorthi (D-IL), and six other representatives. They cited evidence from the Select Committee on the Chinese Communist Party (SCCCP), including a report titled DeepSeek, which highlighted how these chips are allegedly being used to support Beijing’s military and surveillance systems.

Chairman Moolenaar emphasized the need for action, stating that the CCP has long exploited weaknesses in U.S. export controls to access American technology. He said, “This bill shuts those loopholes and helps protect both our national security and our technological edge.”

Key Provisions of the Chip Security Act

The Chip Security Act includes several important provisions aimed at strengthening the security of AI chip exports:

1. Mandate Location Verification: The bill requires that all AI chip shipments be verified for their final destination to prevent them from being diverted to China or other hostile nations.

2. Enforce Reporting Requirements: Chipmakers will be required to report any suspicious transactions or attempts to divert chips to unauthorized parties. This measure aims to increase transparency and accountability within the industry.

3. Direct Commerce Department to Study Tech Theft: The legislation calls for the Department of Commerce to investigate and implement stronger protections against the theft of American technology. This includes developing strategies to counteract efforts by foreign entities to acquire sensitive technologies.

These measures reflect a broader concern among lawmakers that American innovation is being misused by the CCP. Reports suggest that U.S.-made chips are being utilized to build China’s AI-powered surveillance state. These tools are reportedly used to monitor citizens and suppress dissent in regions such as Xinjiang and Hong Kong.

Broader Implications of the Legislation

The SCCCPC highlighted the significance of the bill, noting that it not only protects national security but also safeguards high-paying jobs in the U.S. tech sector. By preventing American technology from being used to support authoritarian regimes, the legislation aims to ensure that U.S. innovation remains a tool for freedom rather than oppression.

In addition to the House bill, a companion measure has been introduced in the Senate by Senator Tom Cotton (R-AR). This demonstrates a strong bipartisan consensus on the importance of securing U.S. technology from misuse.

The SCCCPC warned that the CCP’s exploitation of U.S. innovation must come to an end. They stressed that American technology should never be used as a tool of tyranny. The introduction of the Chip Security Act marks a significant step toward addressing these concerns and ensuring that U.S. advancements serve the interests of national security and democratic values.