Moolenaar: Smuggling Case Shows Urgent Need for Bipartisan Chip Security Act

United States House Select Committee on Strategic Competition between the United States and the Chinese Communist Party
November 20, 2025
Press Release

Today, the Department of Justice announced it has indicted three Chinese nationals for smuggling high-tech chips to China. According to reports, they “were involved in a scheme to ship these chips to third party countries—Thailand and Malaysia—that would then be shipped to China."

“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,” said Select Committee on China Chairman John Moolenaar (R-MI).

The bipartisan Chip Security Act was introduced in May by Moolenaar, as well as Select Committee 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). It now has 30 bipartisan cosponsors.

The Chip Security Act would:

  • Require Location Verification for Advanced AI Chips: The Department of Commerce must work to ensure America’s most advanced AI chips are not diverted to unauthorized regions and end up in the hands of our adversaries—especially those fueling military aggression or targeting the U.S. economy and service members.
  • Enforce Mandatory Reporting: Chipmaker companies must report and share credible information about potential diversion of sensitive technology to restricted actors.
  • Study Additional Safeguards: Requires the Department of Commerce to study additional methods that could stop U.S. chips from being stolen, misused, or ending up in the wrong hands. 

The bill is a direct response to bipartisan concerns raised by the House Select Committee on China and reinforces the need for enforceable safeguards to prevent the CCP from accelerating its AI capabilities with American technology.

A companion bill was introduced in the Senate by Senator Tom Cotton (R-AR). A copy of that legislation is available here.