Proposed Legislation: US Could Impose Stiff Penalties for Using Chinese AI Technology
A proposed US law aims to ban the use of Chinese AI technologies, including DeepSeek, within the country, citing national security concerns. The legislation threatens heavy penalties for companies and individuals found using such technologies, alongside restricting AI collaboration with China. This move seeks to enhance US competitiveness while intensifying the trade tensions between the two nations.
Potential Penalties for Using Chinese AI Tech in the US
Key Highlights
- A draft law aims to ban the import and use of AI technology originating from China, including DeepSeek, warning of severe repercussions for non-compliance.
- Companies found infringing the law may incur fines up to $100 million, while individuals face penalties reaching $1 million and possible incarceration.
- The legislation seeks to block US citizens from engaging in AI research and development within China, collaborating with Chinese entities, or sharing research with Chinese nationals.
The ascension of DeepSeek, a Chinese competitor to ChatGPT, is causing ripples across the United States, capturing attention from both businesses and the government. In an effort to safeguard America's leadership in the field of Artificial Intelligence, and to ramp up trade restrictions on China, Senator Josh Hawley has introduced legislation aimed at severely penalizing the use and distribution of any Chinese AI products, such as DeepSeek, within the US.
The proposed bill holds firm its conviction to “prohibit United States persons from advancing artificial intelligence capabilities within the People’s Republic of China, and for other purposes.” Among its key provisions is a ban on introducing AI technologies or intellectual property from China, to be enacted 180 days post-law approval. This would implicate anyone utilizing or circulating Chinese AI technologies.
The punitive measures outlined are stringent. Corporate violators might face fines totaling $100 million, while individual offenders could be subject to penalties of $1 million. Moreover, civil repercussions involve paying triple the losses incurred by the US government. Those found guilty would also face a five-year ban on federal contracts, licenses, and financial aid.
DeepSeek, though not explicitly mentioned in the bill, has come under scrutiny by the US government, flagged as a potential security risk and rival to American AI industries. The Independent highlighted former President Trump's remark labeling the app a “wake-up call” for the US. Already, agencies like the US Navy and NASA have forbidden its usage.
Beyond forbidding AI imports from China, the bill also restricts the export, re-export, or domestic transfer of AI innovations from the US to China—an anticipated measure given the ongoing trade conflict.
Should this legislation be enacted, US nationals will be restricted from conducting AI research and development within China, forming partnerships with Chinese organizations, or conveying AI research to Chinese nationals associated with the Chinese government or military.
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