Summary#
This bill would change federal criminal and civil law to limit many interactions between United States persons and the People's Republic of China related to artificial intelligence (AI). Key parts: it would ban importing AI technology or AI intellectual property developed in the People's Republic of China; ban exporting, reexporting, or transferring AI technology or AI intellectual property to or within the People's Republic of China; prohibit United States persons from doing AI research or development in China or for, with, or on behalf of Chinese entities of concern; and bar U.S. persons from holding interests in or providing financing to certain Chinese AI entities that support military-civil fusion, surveillance, or human rights abuses. The bill adds new definitions to Title 18 of the U.S. Code (including that "People's Republic of China" includes Hong Kong and Macau), sets criminal and civil penalties, requires agencies to issue implementing regulations, and makes an offense under the new research prohibition relevant to immigration admissibility.
What it means for you#
- If you are a U.S. person (including U.S. companies, many institutions, and some individuals), you could not import AI or generative AI technology developed in the People's Republic of China once the import ban takes effect.
- You could not export, reexport, or transfer AI technology or AI intellectual property to or within the People's Republic of China after the export ban takes effect.
- You could not intentionally conduct, assist, or collaborate on AI research or development in the People's Republic of China, for or with an "entity of concern," or for nationals of China working for such entities.
- One year after enactment, you could not knowingly hold or manage an interest in, or lend money or extend credit to, certain Chinese entities involved in AI that assist military-civil fusion, develop surveillance capabilities, or are implicated in human rights abuses.
- The bill requires the Secretary of Commerce and the Attorney General (with other agencies) to issue regulations and enforce these prohibitions within set deadlines.
Expenses#
- The bill specifies monetary penalties and forfeitures:
- For violations of the research prohibitions, a non‑individual U.S. person may be fined up to $100,000,000 and forfeit licenses, contracts, subcontracts, grants, or public benefits awarded by any Federal agency. Officers, directors, partners, agents, or employees may be fined up to $1,000,000. Individuals may be fined up to $1,000,000 and forfeit specified federal awards or benefits.
- Violators of the research provisions also face ineligibility for Federal financial assistance for five years and civil remedies including equitable relief, treble damages, treble costs (including attorney's fees), and civil fines up to the same amounts above.
- For the import/export prohibitions, the bill makes violators subject to the criminal and civil penalties described in section 1760 of the Export Control Reform Act of 2018 to the same extent as similar violations under that Act.
- No publicly available information on estimated costs to the federal government for implementing or enforcing the bill beyond the penalties and forfeitures described above.