Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party have urged National Security Advisor Mike Waltz to consider implementing export controls on semiconductor chips crucial to China's AI company, DeepSeek. They also recommended strengthening controls on shipments through third countries that could potentially divert these technologies to China.
This request follows a memorandum from President Trump directing key agencies to review the U.S. export control system in response to developments involving strategic adversaries. The lawmakers are concerned about DeepSeek's use of Nvidia’s H800 chip, which was designed to bypass current U.S. export controls.
The letter from Moolenaar and Krishnamoorthi suggests updating Federal Acquisition Regulations to prevent federal acquisition of AI systems based on Chinese models like DeepSeek, except for specific intelligence and research purposes. They also propose using Executive Order 13873 to restrict Chinese AI systems from being used in critical U.S. infrastructure due to concerns over data privacy.
Moolenaar emphasized the need for action, stating: "To protect American leadership in AI, the U.S. must swiftly strengthen export controls on the technology behind DeepSeek’s model." He expressed skepticism about DeepSeek's self-reported development costs and raised national security concerns regarding its rapid growth under CCP control.
Krishnamoorthi highlighted: “DeepSeek is deeply alarming, and it is seeking to undermine American AI leadership.” He stressed that protecting American innovation requires balancing export controls with fostering AI advancements.
The lawmakers also pointed out that Singapore accounted for 22% of Nvidia’s revenue recently, with many shipments eventually reaching users outside Singapore. They advocate for strict licensing requirements for countries like Singapore unless they address potential transshipment issues involving China.
The call for action aims at safeguarding American technological advances while addressing risks posed by foreign entities gaining access to sensitive data and technology.
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