Bipartisan lawmakers introduce Chip Security Act against AI chip smuggling

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Bipartisan lawmakers introduce Chip Security Act against AI chip smuggling

Congressman John Moolenaar Chairman of the Select Committee on the CCP | Official Website

House Select Committee on China Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL), along with a bipartisan group of representatives, have introduced the Chip Security Act. This legislation aims to prevent advanced U.S. AI chips from being smuggled into China and used by adversaries like the Chinese Communist Party (CCP).

The bill addresses concerns highlighted in the Select Committee’s DeepSeek report, which indicates that U.S. chips have been diverted to China through shell companies. These chips reportedly support the CCP's military advancements, surveillance systems, and efforts to achieve AI dominance.

Chairman Moolenaar stated, "For too long, the Chinese Communist Party has exploited weaknesses in our export control enforcement system—using shell companies and smuggling networks to divert sensitive U.S. technology that helps fuel its military advancement and extend its surveillance capabilities to further its repression." He emphasized that this puts national security at risk and threatens America's leadership in artificial intelligence. Moolenaar expressed pride in working with colleagues from both parties to pass this legislation.

The Chip Security Act proposes several measures:

1. **Location Verification**: The Department of Commerce will ensure that advanced AI chips are not sent to unauthorized regions or adversaries.

2. **Mandatory Reporting**: Chipmakers must report any credible information about potential diversions of sensitive technology.

3. **Additional Safeguards Study**: The Department of Commerce is tasked with exploring further methods to prevent U.S. chips from being stolen or misused.

This legislative effort responds to bipartisan concerns over safeguarding American technology from boosting China's AI capabilities. A companion bill has been introduced in the Senate by Senator Tom Cotton (R-AR).

The bill is designed to protect American troops by preventing adversaries like China from using advanced AI-enabled weapons against U.S. service members in future conflicts. It also aims to safeguard American jobs and innovation by maintaining technological leadership and protecting high-paying jobs in sectors such as semiconductors and software manufacturing.

Furthermore, it seeks to prevent U.S.-sourced technology from contributing to oppressive regimes abroad, thus preserving American values and global credibility.