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New US Bill Could Ban AI Trade with China—Fines Reach $100 Million

Key Takeaways

  • ​Senator Josh Hawley has introduced a new bill aimed to ban AI trade with China, restricting research, imports, and exports;
  • Violators could face fines up to $100 million, loss of federal contracts, and 20 years in prison;
  • Critics warn the bill may slow US AI progress and harm open-source development.
New US Bill Could Ban AI Trade with China—Fines Reach $100 Million

Missouri Senator Josh Hawley has proposed a bill aimed at restricting the exchange of artificial intelligence (AI) technology between the United States and China.

Known as the Decoupling America’s Artificial Intelligence Capabilities from China Act, the proposal is meant to protect US intellectual property and prevent foreign entities from gaining access to AI tools that could pose security risks.

Although the bill does not specifically mention DeepSeek, a Chinese AI company, it would effectively ban Americans from downloading its chatbot, which functions similarly to OpenAI’s ChatGPT.

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If passed, individuals and companies in the US would be prohibited from using, importing, or exporting AI technology linked to China. The law would also prevent US companies from conducting AI research in China or funding AI development there.

Violating these rules would come with serious consequences. Individuals could face fines as high as $1 million, while companies could be fined up to $100 million.

Additionally, those who break the law could lose federal contracts, grants, or other government benefits. The bill also includes a maximum prison sentence of 20 years for violators.

In a January 29 statement, Senator Hawley warned that any data or financial contributions to Chinese AI could be used against the US. He stated:

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.

Not everyone agrees with this approach. Ben Brooks, a researcher at Harvard’s AI Research, criticized the bill, calling it the “most aggressive legislative action on AI” and warning that it could “kill open-source” development.

Meanwhile, on February 4, Senator Bill Hagerty proposed a bill titled the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. What did it highlight? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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