AI Frontier Institute

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

View primary source →

The Decoupling America's Artificial Intelligence Capabilities from China Act of 2025 establishes a sweeping set of prohibitions aimed at separating U.S. artificial intelligence capabilities from the People's Republic of China (PRC). Section 3 bans, effective 180 days after enactment, the importation into the United States of any AI or generative AI technology or intellectual property developed or produced in the PRC, and equally bans the export, reexport, or in-country transfer of such technology or IP to or within the PRC. The Secretary of Commerce must issue implementing regulations within 90 days of enactment. Willful violations carry criminal penalties mirroring those in section 1760(b) of the Export Control Reform Act of 2018 (50 U.S.C. 4819), and civil penalties mirror section 1760(c) of that Act. Section 4 amends Part I of title 18, United States Code, by adding chapter 124, which prohibits U.S. persons from intentionally conducting, attempting, conspiring to conduct, or aiding and abetting AI or generative AI research or development within the PRC, for or on behalf of a Chinese entity of concern, or in collaboration with PRC nationals working for such entities (section 2742). It also prohibits U.S. persons from transferring AI research information to or from the PRC or entities of concern (section 2742(b)). Under section 2743, non-individual U.S. persons face fines up to $100,000,000 and forfeiture of federal licenses, contracts, and grants; individual violators face fines up to $1,000,000 and similar forfeiture; all violators are ineligible for federal financial assistance for five years after a penalty is imposed. Civil remedies include treble damages, treble litigation costs, and civil fines up to $100,000,000 for entities or $1,000,000 for individuals. Section 5 prohibits U.S. persons, beginning one year after enactment, from knowingly holding or managing an interest in, or lending money or extending credit to, a Chinese entity of concern that conducts AI research or development or produces AI-incorporating goods and that also assists in the PRC military-civil fusion strategy, assists in developing surveillance capabilities, or is implicated in human rights abuses. The President may use authorities under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to implement section 5, with penalties under section 206 of that Act (50 U.S.C. 1705).

← Back to the tracker