Following a significant hearing on AI competition with the Chinese Communist Party (CCP), bipartisan leaders in Congress are advocating for the Chip Security Act. This legislation aims to protect U.S. chip businesses and prevent the smuggling of advanced U.S. AI chips into China, which allegedly supports the CCP's military and surveillance operations.
Chairman John Moolenaar of the House Select Committee on the CCP, Senate Intelligence Chairman Tom Cotton, and Representative Bill Huizenga are spearheading this bill with support from various lawmakers in both chambers.
The United States is focused on ensuring that global AI infrastructure relies on U.S. technology to avoid its strategic use by the CCP for authoritarian purposes. Recent studies indicate that chip smuggling undermines U.S. businesses and national security priorities. The Chip Security Act seeks to address this by identifying and halting attempts by China's AI industry to acquire U.S. technology.
In 2024 alone, approximately 140,000 chips were reportedly smuggled to resources in China. The bill responds to bipartisan concerns about safeguarding American technology from being used to enhance China's military capabilities.
The Chip Security Act proposes several measures:
1. **Location Verification**: The Department of Commerce must ensure advanced AI chips do not reach unauthorized regions or adversaries.
2. **Mandatory Reporting**: Chipmakers must report any diversion of AI chips to restricted actors.
3. **Study Additional Safeguards**: The Department of Commerce will explore additional methods to prevent theft or misuse of U.S. chips.
4. **Recommend Alternative Export Regimes**: Recommendations will be made for more flexible export controls for secure chips.
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...This bipartisan bill closes those gaps with real safeguards." Chairman Cotton emphasized maintaining America's technological edge while expanding access globally without compromising security.
Ranking Member Krishnamoorthi added that allowing continued smuggling risks America's technological leadership and values but believes the act provides enforceable solutions.
Congressman Bill Foster highlighted his technical expertise in preventing powerful AI technology from reaching adversaries and stressed the importance of protecting exports.
Senator Lummis expressed confidence that this bill would help expand U.S. chip markets securely.
The legislation enjoys bipartisan support across Congress, with notable backing from Representatives Rick Crawford, Josh Gottheimer, Ted Lieu, Brad Sherman, Mike Lawler, Darin LaHood, and Senators Maggie Hassan, Cynthia Lummis, and Brian Schatz among others.
