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Wednesday, September 10, 2025

Bipartisan lawmakers introduce bill targeting AI chip smuggling to China

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

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 several other representatives, have introduced the Chip Security Act. This bipartisan legislation aims to prevent advanced U.S. AI chips from being smuggled into China, where they could potentially be used by the Chinese Communist Party (CCP) for military and surveillance purposes.

The bill is a response to evidence suggesting that U.S. chips have been redirected to China through shell companies. These chips are reportedly being used to enhance the CCP's military capabilities and surveillance systems.

Chairman Moolenaar emphasized the risks posed by these activities, stating, "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 highlighted the importance of safeguarding national security and maintaining leadership in artificial intelligence.

The Chip Security Act proposes several measures:

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

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

3. **Study Additional Safeguards**: The Department of Commerce will explore additional methods to prevent misuse or theft of U.S. chips.

A companion bill has also been introduced in the Senate by Senator Tom Cotton (R-AR).

The proposed legislation seeks to protect American troops by preventing adversaries from using U.S.-powered AI weapons against them. It also aims to safeguard American jobs and innovation by maintaining technological leadership and preventing foreign competitors from gaining an edge with stolen technology.

Furthermore, the bill intends to block oppressive regimes from using U.S.-sourced technology for authoritarian purposes, thereby upholding American values internationally.

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