Protecting U.S. Tech: China Committee and Bipartisan, Bicameral Leaders Unite to Stop CCP AI Chip Smuggling

WASHINGTON, D.C. — Following the June 25th landmark hearing on AI competition with the Chinese Communist Party, bipartisan, bicameral leaders are renewing their push behind the Chip Security Act, legislation aimed at using workable and secure industry tools that protect and support U.S. chip businesses and stop the smuggling of advanced U.S. AI chips into China, fueling the CCP’s military and surveillance state.

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 the bill, alongside a broad coalition of lawmakers in both chambers.

Why It Matters:

The United States must ensure that global AI infrastructure is built on U.S. technology to prevent the CCP from co-opting this strategic technology to serve its techno-authoritarian vision for the world.

Recent studies have confirmed it: chip smuggling undermines U.S. businesses and American national security priorities. The Chip Security Act will directly combat the People's Republic of China's AI industry by identifying and shutting down their attempts to steal our technology.

Estimates suggest that a median 140,000 chips were smuggled to PRC resources in 2024 alone.

The bill also responds 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. Evidence, including the Select Committee's DeepSeek report, shows that U.S. chips were potentially funneled into China through shell companies, where they’re used to advance the CCP’s military and surveillance apparatus.

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 evidence of AI Chip diversion 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.
• Recommend Alternative Export Regimes: Requires the Department of Commerce to study and make recommendations on more flexible export controls for chips with security mechanisms.

"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," said Chairman Moolenaar. "That puts our national security and our leadership in artificial intelligence at risk. This bipartisan bill closes those gaps with real safeguards to keep our most advanced chips out of the wrong hands. I’m proud to work with my colleagues on both sides of the aisle, and we’re committed to getting this legislation across the finish line and signed into law.”

“We must do better at maintaining and expanding our position in the global market, while safeguarding America’s technological edge. With these enhanced security measures, we can continue to expand access to U.S. technology without compromising our national security,” said Chairman Cotton.

“If we allow the Chinese Communist Party to continue smuggling our most advanced AI chips into its military and surveillance state, it doesn’t just mean export controls that are on the books are going unenforced—we’re risking America’s technological edge, our national security, and the values we stand for. The Chip Security Act offers smart, enforceable solutions to ensure we know advanced chips aren’t being smuggled and that we protect U.S. innovation from being turned against us. I’m proud to join my colleagues on both sides of the aisle, including Congressman Bill Foster, in advancing this vital legislation," added Ranking Member Krishnamoorthi (D-Ill.).

“As Congress’ chip designer, AI programmer, and PhD physicist, I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands. With advanced AI chips being smuggled into China and posing a national security risk, Congress must act,” said Congressman Bill Foster (D-Ill.). “I’m proud to lead the effort on this bipartisan legislation, which is an important step in protecting our exports and ensuring that U.S. technology is not used to undermine democracy and global stability.”

“We need to make sure that the AI infrastructure isn’t getting siphoned off to China,” said Senator Lummis (R-Wyo). “This bill advances our ability to expand our chips into global markets with peace of mind.”

The legislation has gained bipartisan support from both chambers of Congress.

Chairman Moolenaar, Representative Huizenga, Ranking Member Krishnamoorthi, and Representatives Bill Foster, Rick Crawford (R-Ark.), Josh Gottheimer (D-N.J.), Ted Lieu (D-Calif.), Brad Sherman (D-Calif.), Mike Lawler (R-N.Y.), and Darin LaHood (R-Ill.) back the legislation in the House.

Senators Maggie Hassan (D-N.H.), Cynthia Lummis, and Brian Schatz (D-Hawaii) have cosponsored Chairman Cotton's companion legislation.

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