Washington, May 23 (IANS) The US Senate has passed bipartisan legislation aimed at stopping the smuggling of advanced American semiconductors into China, amid growing concerns in Washington that the chips could be used for Chinese military and artificial intelligence applications.
The legislation, titled the “Stop Stealing our Chips Act,” was introduced by Republican Senator Mike Rounds and co-sponsored by Democratic Senator Mark Warner. The bill would create a whistleblower incentive programme within the Bureau of Industry and Security (BIS) to encourage reporting of illegal semiconductor exports.
“I am pleased that the Stop Stealing our Chips Act has passed the Senate,” Rounds said.
“The United States has taken extensive measures to prevent American-made semiconductors from falling into the wrong hands, particularly China; however, China continues to smuggle these chips into their country,” he said.
Rounds warned that the rapid growth of artificial intelligence had increased the stakes.
“As the use of artificial intelligence continues to accelerate, this creates a grave national security concern,” he said. “Our legislation would strengthen BIS’s export control enforcement by rewarding whistleblowers with credible information on illegal actions to come forward.”
The measure now heads to the House of Representatives for final passage before it can be sent to President Donald Trump for his signature.
Warner described the Senate vote as a key step in tightening US export controls.
“Today’s Senate passage of the Stop Stealing our Chips Act is an important step toward strengthening our export control system and protecting America’s national security,” Warner said.
“As China continues working to acquire advanced American AI technology through illicit networks, we need stronger tools to detect and prevent these violations,” he added.
According to the legislation, BIS would be required to establish a secure public platform for whistleblower submissions within 120 days of enactment. The bill would also create an “Export Compliance Accountability Fund” financed through fines collected from export control violations.
Under the proposal, whistleblowers providing original information leading to successful enforcement actions could receive between 10 and 30 per cent of collected fines. Federal employees acting within the scope of their duties and individuals linked to terrorism or sanctions lists would be excluded from receiving awards.
The legislation also includes confidentiality guarantees and anti-retaliation protections for whistleblowers. Employers would be barred from dismissing, harassing or discriminating against employees who lawfully report export control violations.
The bill says reports deemed credible must trigger formal investigations within 60 days. Whistleblowers would receive status updates every 30 days while investigations remain active.
Rounds’ office said reports have identified at least eight Chinese smuggling networks conducting transactions exceeding $100 million each. The statement added that some restricted chips reached sanctioned Chinese entities, including military research institutions and firms linked to the People’s Liberation Army.
Washington has tightened export controls on advanced semiconductor technology in recent years as competition between the United States and China intensifies over artificial intelligence, supercomputing and military technologies. US officials have repeatedly argued that advanced chips designed by American companies could strengthen China’s defence and surveillance capabilities if diverted through third-country networks.
–IANS
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