The Department of Justice has indicted three Chinese nationals accused of smuggling advanced computer chips to China. Reports indicate the individuals allegedly shipped the chips to Thailand and Malaysia before they were sent on to China.
Chairman John Moolenaar (R-MI) of the House Select Committee on the Chinese Communist Party commented, "China continues to flout U.S. export controls and this indictment is the latest example. China recognizes the superiority of American AI innovation and will do whatever it must to catch up. That’s why the bipartisan Chip Security Act is urgently needed. The bill will safeguard our cutting-edge technology and require location verification to prevent our chips from being smuggled to our adversaries."
The bipartisan Chip Security Act was introduced in May by several lawmakers including Moolenaar, Ranking Member Raja Krishnamoorthi (D-IL), House Intelligence Committee Chair Rick Crawford (R-AR), Congressman Bill Foster (D-IL), Congressman Josh Gottheimer (D-NJ), Congressman Bill Huizenga (R-MI), Congressman Darin LaHood (R-IL), and Congressman Ted Lieu (D-CA). The legislation currently has 30 bipartisan cosponsors.
Key provisions of the bill include requiring the Department of Commerce to verify that advanced AI chips are not diverted to unauthorized regions, mandating chipmakers report credible information about possible diversions, and directing a study into further safeguards against theft or misuse of U.S. chip technology.
The proposal comes as a response to concerns raised by the House Select Committee on China regarding efforts by foreign actors, particularly those associated with military activities or targeting U.S. interests, to obtain sensitive American technology.
A companion version of the Chip Security Act was also introduced in the Senate by Senator Tom Cotton (R-AR).
