Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi have urged National Security Advisor Mike Waltz to evaluate the potential national security advantages of implementing export controls on semiconductor chips vital to the AI infrastructure of DeepSeek, a company from the People's Republic of China (PRC). The lawmakers also suggested enhancing regulations on shipments through third countries that might divert these technologies to the PRC.
This request follows President Trump's memorandum directing key agencies to "review the U.S. export control system in light of developments involving strategic adversaries."
The lawmakers proposed updating Federal Acquisition Regulations to restrict federal procurement of AI systems based on PRC models like DeepSeek, except for specific intelligence and research purposes. They also recommended considering Executive Order 13873 to limit PRC AI systems in U.S. critical infrastructure. Concerns were raised about DeepSeek's privacy policy, which allows data transfers to the PRC.
In their letter, Moolenaar and Krishnamoorthi stated, “DeepSeek made extensive use of Nvidia’s H800 chip, the first chip that Nvidia designed specifically to fall outside U.S. export controls." They emphasized the need for regular updates to export controls to prevent regulatory loopholes that could benefit PRC's AI ambitions. The committee supports American AI innovation while advocating for protective measures against exploitation by the PRC.
They further commented, "It is clear we are at an inflection point in the AI market where PRC AI systems are increasingly available for use in the United States."
Chairman Moolenaar highlighted, "To protect American leadership in AI, the U.S. must swiftly strengthen export controls on the technology behind DeepSeek’s model." He expressed skepticism over DeepSeek's reported development costs due to its rapid growth and connections with China's Communist Party.
Ranking Member Krishnamoorthi remarked, “DeepSeek is deeply alarming, and it is seeking to undermine American AI leadership.”
The letter urged Mr. Waltz to consider placing export controls on Nvidia’s H20 chip and similar technologies while tightening restrictions on shipments via third countries like Singapore due to their high diversion risk.
