The legislation was crafted following revelations from the SCCCP’s DeepSeek report, which detailed how U.S. semiconductor chips are being smuggled into China through intermediary shell companies….reports Asian Lite News
In a rare show of bipartisan unity, lawmakers in the United States have introduced the Chip Security Act, a new legislative push aimed at curbing the transfer of advanced American artificial intelligence (AI) chips to foreign adversaries, particularly the Chinese Communist Party (CCP). The bill comes amid growing concern that U.S.-origin technology is being used to enhance China’s military capabilities and fuel its surveillance state.
The bill was introduced in the House by Representative John Moolenaar (R-MI), chairman of the House Select Committee on the Chinese Communist Party (SCCCP), and Representative Raja Krishnamoorthi (D-IL), the committee’s top Democrat. They were joined by six other lawmakers, reflecting a broad coalition that cuts across party lines. A companion version has also been introduced in the Senate by Senator Tom Cotton (R-AR).
“For too long, the Chinese Communist Party has exploited holes in our export controls to secretly acquire U.S. technology used to fuel its military aggression and domestic repression,” said Moolenaar. “This bill shuts those loopholes and helps protect both our national security and our technological edge.”
The legislation was crafted following revelations from the SCCCP’s DeepSeek report, which detailed how U.S. semiconductor chips are being smuggled into China through intermediary shell companies. These chips, according to the committee, are vital to powering China’s AI-driven tools of surveillance, repression, and military expansion.
The Chip Security Act outlines several key provisions to close those loopholes:
Mandatory location verification for all advanced AI chip shipments, ensuring they are not diverted to restricted entities in China or other hostile nations.
Stricter reporting requirements for chipmakers who detect suspicious sales or diversion attempts.
A directive to the Department of Commerce to strengthen existing protections and propose new regulatory frameworks to guard against technology theft.
The SCCCP argues the bill is essential to preventing American innovation from being “weaponised” by adversarial regimes. The committee warns that Chinese authorities are using U.S.-made chips to build oppressive technologies such as facial recognition and predictive policing systems, particularly in restive regions like Xinjiang and Hong Kong.
“The CCP’s abuse of U.S. innovation must end. American technology should never be a tool of tyranny,” the committee said in a statement.
Beyond national security, lawmakers also framed the legislation as an economic measure, aiming to protect U.S. high-tech jobs and keep America’s competitive edge in the global semiconductor industry intact.
If passed, the Chip Security Act would represent one of the most aggressive moves yet by Congress to plug holes in the export control regime, and it marks a growing consensus in Washington that economic cooperation with China must no longer come at the cost of American security or values.
