AI Frontier Institute

Decoupling America's Artificial Intelligence Capabilities from China Act of 2025

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The Decoupling America's Artificial Intelligence Capabilities from China Act of 2025 would cut US–China ties in AI in three ways. First, Section 3 bans importing AI or generative AI technology or intellectual property developed or produced in the People's Republic of China (PRC). It also bans exporting, reexporting, or transferring such technology or IP to or within the PRC. Both bans start 180 days after enactment. Criminal and civil penalties borrow from section 1760 of the Export Control Reform Act of 2018, and the Secretary of Commerce must issue implementing regulations within 90 days. Second, Section 4 adds a new chapter 124 to title 18, U.S. Code (sections 2741–2743). It bars US persons from intentionally conducting AI research or development, or transferring AI research information, within the PRC. The bar also covers work for, on behalf of, or in collaboration with Chinese "entities of concern" (PRC universities, research institutions, corporations, and government bodies) or their nationals. Entities face fines up to $100,000,000, and individuals and entity officers, directors, partners, agents, or employees face fines up to $1,000,000. Violators also forfeit federal licenses, contracts, grants, and public benefits, and are barred from federal financial assistance for 5 years. The US may also bring civil actions seeking injunctions, treble damages, punitive damages, and civil fines. Third, Section 5 starts one year after enactment. It prohibits US persons from knowingly holding or managing an interest in, or lending to, a Chinese entity of concern that does AI or generative AI research, development, or products and also supports the military-civil fusion strategy, supports surveillance capabilities, or is implicated in human rights abuses. The President may use International Emergency Economic Powers Act authorities, and penalties follow section 206 of that Act. Section 2 supplies the definitions.

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