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    Home / News / Business News / US bill to block smuggling of AI chips to China
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    US bill to block smuggling of AI chips to China
    The move follows reports of illegal AI chip exports to China

    US bill to block smuggling of AI chips to China

    By Akash Pandey
    May 16, 2025
    04:22 pm

    What's the story

    A bipartisan group of eight US lawmakers has introduced new legislation, the Chip Security Act, in the House of Representatives.

    The bill mandates artificial intelligence (AI) chip manufacturers such as NVIDIA to incorporate technology that can verify the location of their chips before export.

    This initiative comes as a response to reports that US export-controlled AI chips are being illegally transported into China.

    Export concerns

    US officials have been trying to curb chip exports

    US officials, across presidential administrations, have long tried to restrict the sale of these advanced AI chips to China.

    However, media reports suggest that some chips are still being illegally exported.

    Michigan Representative Bill Huizenga, who introduced the House bill, said, "In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors."

    Senate action

    Similar legislation proposed in the Senate

    Notably, Arkansas Senator Tom Cotton proposed a similar bill in the US Senate last week.

    The House bill was co-led by Illinois Democrat Representative Bill Foster, who has a background as a physicist.

    Foster designed several chips during his scientific career and is now bringing that expertise to bear on this legislative effort.

    "I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands," Foster said in a statement.

    Scenario

    Trump strikes Middle East deals

    The House bill follows the Trump administration's decision to revoke a rule introduced by former President Joe Biden aimed at regulating the global distribution of advanced AI chips. So far, no replacement regulation has been proposed.

    Meanwhile, Trump toured the Middle East this week, unveiling a series of deals to export AI chips to the region, despite increasing pushback from within the US government.

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