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Wednesday, September 10, 2025

U.S. lawmakers push Chip Security Act against CCP's AI chip smuggling

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Congressman John Moolenaar Chairman of the Select Committee on the CCP | Facebook

Congressman John Moolenaar Chairman of the Select Committee on the CCP | Facebook

Following a significant hearing on AI competition with the Chinese Communist Party, U.S. lawmakers are renewing efforts to advance the Chip Security Act. This legislation aims to protect U.S. chip businesses and prevent the smuggling of advanced AI chips into China, which supports the CCP's military and surveillance capabilities.

Chairman John Moolenaar (R-Mich.) of the House Select Committee on the CCP, Senate Intelligence Chairman Tom Cotton (R-Ark.), and Representative Bill Huizenga (R-Mich.) are leading this initiative with support from a coalition of lawmakers across both chambers.

The act addresses concerns that global AI infrastructure should be based on U.S. technology to prevent misuse by the CCP. Studies indicate that chip smuggling undermines U.S. businesses and national security priorities, with an estimated 140,000 chips smuggled to China in 2024 alone.

The Chip Security Act proposes several measures:

- Require location verification for advanced AI chips to ensure they do not reach unauthorized regions.

- Enforce mandatory reporting by chipmakers regarding diversion to restricted actors.

- Study additional safeguards against theft or misuse of U.S. chips.

- Recommend alternative export regimes with more flexible controls for secure chips.

Chairman Moolenaar emphasized the need for real safeguards: "For too long, the Chinese Communist Party has exploited weaknesses in our export control enforcement system... This bipartisan bill closes those gaps."

Chairman Cotton highlighted maintaining America's technological edge: "We must do better at maintaining and expanding our position in the global market while safeguarding America’s technological edge."

Ranking Member Krishnamoorthi (D-Ill.) added: "If we allow the Chinese Communist Party to continue smuggling our most advanced AI chips... we’re risking America’s technological edge."

Congressman Bill Foster (D-Ill.) noted his technical expertise in supporting this legislation: "As Congress’ chip designer, AI programmer, and PhD physicist... I’m proud to lead the effort on this bipartisan legislation."

Senator Lummis (R-Wyo) stressed protecting AI infrastructure: “We need to make sure that the AI infrastructure isn’t getting siphoned off to China.”

The bill has gained bipartisan support from both chambers of Congress, with backing from multiple representatives and senators.

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