On January 29, Senator Josh Hawley (R-MO) introduced the Decoupling America’s Artificial Intelligence Capabilities from China Act (S. 321), one of the first bills of 119th Congress to address escalating U.S. competition with China on artificial intelligence.  The new legislation comes just days after Chinese AI company DeepSeek launched its R1 AI model with advanced capabilities that has been widely viewed as a possible turning point in the U.S.-China AI race.  If enacted, S. 321 would impose sweeping prohibitions on U.S. imports and exports of AI and generative AI technologies and R&D to and from China and bar U.S. investments in AI technology developed or produced in China.  The bill, which was referred to the Senate Judiciary Committee, had no cosponsors and no House companion at the time of introduction.

Specifically, S. 321 would prohibit U.S. persons—including any corporation or educational or research institution in the U.S. or controlled by U.S. citizens or permanent residents—from (1) exporting AI or generative AI technology or IP to China or (2) importing AI or generative AI technology or IP developed or produced in China.  In addition, the bill would bar U.S. persons from transferring AI or generative AI research to China or Chinese educational institutions, research institutions, corporations, or government entities (“Chinese entities of concern”), or from conducting AI or generative AI R&D within China or for, on behalf of, or in collaboration with such entities.

Finally, the bill would prohibit any U.S. person from financing AI R&D with connections to China.  The bill specifically prohibits U.S. persons from “holding or managing any interest in” or extending loans or lines of credit to Chinese entities of concern that conduct AI- or generative AI-related R&D, produce goods that incorporate AI or generative AI R&D, assist with Chinese military or surveillance capabilities, or are implicated in human rights abuses. 

Although S. 321 faces an uncertain future in its current form, the bill likely offers the first glimpse of the type of efforts Congress will pursue to restrict the flow of AI technology between the U.S. and China.  Other members of Congress have already called on the Administration to take steps to respond to the launch of DeepSeek’s R1 model.  On February 3, Senator Elizabeth Warren (D-MA) joined Hawley in a letter to Howard Lutnick, President Trump’s nominee for Commerce Secretary, calling on the Commerce Department to “update and enforce our export controls” in response to DeepSeek.  On January 29,House Select Committee on the Chinese Communist Party Chair John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) sent a letter to White House National Security Adviser Michael Waltz urging the Administration to “consider updating Federal Acquisition Regulations (FAR) to prohibit the federal government from acquiring AI systems based on PRC models such as DeepSeek.”

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