Export Compliance Daily is a service of Warren Communications News.

Senate Bill Would Reward Those Who Report Illegal Exports of AI Chips to China

Sens. Mike Rounds, R-S.D., and Mark Warner, D-Va., introduced a bill April 10 aimed at preventing the smuggling of U.S. artificial intelligence chips into China.

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The Stop Stealing our Chips Act would create a program at the Bureau of Industry and Security to incentivize whistleblowers to report illegal exports of AI chips to China. Whistleblowers providing original information leading to fines against violators could receive 10% to 30% of collected fines, with certain exceptions.

Despite controls on U.S. chip exports, black-market networks and intermediaries continue to find ways to funnel restricted chips to China, a Rounds-Warner press release says. These illegal shipments raise national security concerns because China could use the chips for military or surveillance applications.

“U.S. export control laws serve a crucial purpose in protecting our national security, restricting our adversaries’ access to cutting-edge U.S. goods and technology,” Warner said. “Unfortunately, too often, violations of these laws go unreported and undetected. This legislation would create an incentive for whistleblowers to report the bad actors that are breaking these laws, allowing BIS to better prevent the diversion of export-controlled goods and safeguard our national security.”

The bill was referred to the Senate Banking Committee, of which Rounds and Warner are both members.