Bipartisan US lawmakers introduce chip security bill to combat CCP smuggling.

On Thursday, May 15, bipartisan lawmakers in the United States jointly introduced a bill requiring American tech giants such as Nvidia, a leading artificial intelligence (AI) chip manufacturer, to incorporate technical measures for post-sale tracking in high-end chips.

According to a statement released by the House Select Committee on the CCP, the Chip Security Act is a bipartisan legislation aimed at preventing advanced American AI chips from falling into the hands of hostile forces, particularly the Chinese Communist Party (CCP).

The statement highlighted, “This bill responds to increasing evidence – including the committee’s DeepSeek report – showing that American chips could potentially be transferred to China through shell companies, and used to advance China’s military, surveillance systems, and AI dominance.”

Committee Chairman John Moolenaar emphasized, “For years, the CCP has exploited the weaknesses in our export control enforcement system, transferring sensitive American technology through shell companies and smuggling networks to aid its military advancements and enhance surveillance capabilities for repression. This poses a threat to our national security and leadership in the field of artificial intelligence.”

Moolenaar stressed that “This bipartisan bill, through concrete protective measures, will address these vulnerabilities and ensure that our most advanced chips do not fall into the wrong hands. I am honored to collaborate with colleagues from both parties in advancing this legislation for passage and enactment into law.”

Additionally, Republican Senator Tom Cotton from Arkansas introduced a similar bill in the Senate last week.

The House version of the bill is spearheaded by Democratic Representative Bill Foster from Illinois, a former particle physicist who successfully designed multiple chips during his scientific career.

Foster stated in a release, “I am aware that we have the technological means to prevent powerful artificial intelligence technology from falling into the wrong hands.”

As the House bill was being introduced, the Trump administration officially revoked the AI Diffusion Rule established by the previous Biden administration on May 13. The rule categorized countries into three control levels based on AI chip acquisition thresholds, but it was criticized for being overly cumbersome and trade discriminatory.

In addition to Moolenaar and Foster, lawmakers who co-sponsored the bill include: Democratic Chief Counsel of the CCP Subcommittee Raja Krishnamoorthi; House Intelligence Committee Chair, Republican Rick Crawford; Representatives Josh Gottheimer, Bill Huizenga, Darin LaHood, and Democratic Caucus Vice Chair Ted Lieu.