A new Bill introduced in the Senate seeks to sever ties between American artificial intelligence (AI) development and Chinese technology, making it a federal crime for U.S. citizens to use AI products developed in China.
The proposed Decoupling America’s Artificial Intelligence Capabilities from China Act of 2025 aims to prevent the import, export, and utilization of Chinese AI products within the United States, citing national security concerns and economic threats posed by the Chinese Communist Party (CCP).
The Bill, introduced by Senator Josh Hawley (R-MO), would attempt to safeguard against what lawmakers see as Beijing’s increasing control over global AI advancements.
If passed, “U.S. Persons”—defined broadly to include individuals, corporations, research institutions, and universities—would be prohibited from assisting with Chinese AI research or engaging with Chinese AI products. The law would impose severe criminal and civil penalties on violators, including up to 20 years in prison.
In a press release, Sen. Hawley’s office highlighted that the proposed legislation follows China’s recent unveiling of its latest AI chatbot, DeepSeek. The chatbot has drawn global attention for offering capabilities comparable to AI giants like ChatGPT and Microsoft Copilot but at a significantly lower cost.
Some lawmakers and technology experts have described DeepSeek as a “Sputnik moment” for American AI companies, suggesting that such sophisticated, low-cost Chinese AI poses a direct challenge to U.S. technological leadership and a potential security risk.
The Bill underscores Washington’s growing concerns over China’s military-civil fusion strategy, which compels Chinese companies to share technological advancements with the country’s military.
Lawmakers argue that U.S. reliance on Chinese AI products could allow Beijing to harvest vast amounts of American data, gain a competitive edge in AI-driven warfare, and manipulate global digital ecosystems.
“Every dollar and gig of data that flows into Chinese AI are dollars and data that will ultimately be used against the United States,” Sen. Hawley said in a statement. “America cannot afford to empower our greatest adversary at the expense of our own strength. Ensuring American economic superiority means cutting China off from American ingenuity and halting the subsidization of CCP innovation.”
If enacted, the Bill would establish multiple prohibitions. It would ban the importation of AI technology developed in China into the United States and restrict American companies and individuals from exporting AI technology to China or collaborating with Chinese AI firms.
Additionally, the legislation would prohibit American investment in Chinese AI research and development and enact criminal penalties for those found to be in violation of the law.
Supporters of the Bill argue that cutting off Chinese AI products from the U.S. market would enhance national security, protect intellectual property, and foster domestic innovation.
China has long been accused of targeting U.S. corporations for economic espionage and intellectual property theft. According to the Department of Justice, since 2018, 80% of economic espionage prosecutions and 60% of all trade secret theft cases have had “at least some nexus to China.”
In an interview with The Debrief, former CIA Chief of Counterintelligence James Olson described China’s demand for sensitive U.S. information and technology as “voracious.”
“The Chinese intelligence services know exactly which agencies or corporations and which specialties they are interested in,“ Olson explained. “This is a wide swath, however, because the Chinese appetite for U.S. sensitive information and technology is voracious.“
“It is not limited to penetrations of the U.S. government, but it also includes military-related technologies, industrial processes, agriculture, medicine, space, and cutting-edge research in any area that exceeds Chinese capabilities.“
Last week, Microsoft and OpenAI announced they were investigating whether China had illegally used their AI models to train and develop DeepSeek.
Supporters of the new legislation argue that banning American use of Chinese AI would help prevent potential espionage and cybersecurity threats from software embedded with backdoors.
The law could also stimulate growth in the American AI sector and reduce dependency on foreign technology by forcing U.S. businesses and institutions to develop or rely on homegrown AI.
Some also argue that curbing reliance on Chinese AI would help counteract Beijing’s aggressive economic policies. China has been accused of undercutting U.S. industries through state subsidies and intellectual property theft.
President Donald Trump suggested that China’s recent release of DeepSeek could benefit American industry by pushing the U.S. tech sector to develop comparable low-cost AI solutions rather than investing “billions and billions“ in AI development.
“The release of DeepSeek, AI from a Chinese company, should be a wake-up call for our industries that we need to be laser-focused on competing to win,“ President Trump said.
While the proposed Bill could help shield against China’s influence, the suggested restrictions could also lead to significant unintended consequences.
The broad definition of U.S. “persons“ could complicate enforcement, potentially implicating American businesses that unknowingly utilize Chinese-developed AI in their supply chains or operations.
U.S. companies relying on Chinese AI tools for automation, logistics, and research may face disruptions, leading to increased costs and slower innovation. The law could also provoke economic countermeasures from Beijing, including restrictions on U.S. companies operating in China.
The legislation would also restrict collaborations with Chinese institutions, potentially limiting the progress of international scientific advancements.
Significantly, the Bill would impose strict criminal and civil penalties for those who violate the prohibitions on using Chinese AI products. Individuals and entities that engage in transactions involving Chinese AI products could face the same penalties as those who violate U.S. export control laws.
Under the Export Control Reform Act of 2018 (50 U.S.C. 4819), willfully violating, attempting to violate, or conspiring to violate the law can lead to criminal penalties of up to 20 years in prison and fines of up to $1 million. Civily, individuals and corporations could be fined up to $300,000 per violation or twice the value of the transaction that led to the violation, whichever is greater.
In essence, the Bill would make bypassing a ban on Chinese AI—such as accessing these programs through a VPN—a criminal offense, potentially exposing U.S. citizens to arrest, hefty fines, and lengthy prison sentences.
Violators could also face forfeiture of federal contracts, grants, and licenses and potential immigration consequences, including removal of non-citizen visa holders.
The proposed legislation has been referred to the Senate Judiciary Committee for review, where it will be scrutinized by lawmakers on both sides of the aisle.
While the measure aligns with the broader bipartisan push to curb U.S.-China tech collaboration, its enforcement, and broader economic implications will likely be key debate points.
If passed, the legislation would take effect 180 days after enactment, giving businesses and individuals a short window to ensure compliance. The Secretary of Commerce would be tasked with drafting regulations for implementing the law, including defining enforcement mechanisms and clarifying ambiguous provisions.
Ultimately, the Decoupling America’s Artificial Intelligence Capabilities from China Act of 2025 marks a significant escalation in the ongoing tech war between the United States and China.
While the legislation aims to secure U.S. AI supremacy and shield national security, its sweeping scope could have far-reaching consequences for businesses, researchers, and consumers.
As lawmakers deliberate on the Bill, the debate will likely center on balancing national security interests with economic and technological realities. Whether this Bill becomes law or serves as a catalyst for further restrictions on Chinese tech, it signals that Washington is prepared to take increasingly aggressive steps in the ongoing technology war with Beijing.
Tim McMillan is a retired law enforcement executive, investigative reporter and co-founder of The Debrief. His writing typically focuses on defense, national security, the Intelligence Community and topics related to psychology. You can follow Tim on Twitter: @LtTimMcMillan. Tim can be reached by email: tim@thedebrief.org or through encrypted email: LtTimMcMillan@protonmail.com