[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 321 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 321
To amend title 18, United States Code, to prohibit United States
persons from advancing artificial intelligence capabilities within the
People's Republic of China, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 29, 2025
Mr. Hawley introduced the following bill; which was read twice and
referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 18, United States Code, to prohibit United States
persons from advancing artificial intelligence capabilities within the
People's Republic of China, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Decoupling America's Artificial
Intelligence Capabilities from China Act of 2025''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Artificial intelligence; generative artificial
intelligence.--The terms ``artificial intelligence'' and
``generative artificial intelligence'' have the meanings given
those terms in section 2741 of title 18, United States Code, as
added by section 3.
(2) Artificial intelligence or generative artificial
intelligence technology or intellectual property.--The term
``artificial intelligence or generative artificial intelligence
technology or intellectual property'' means technology or
intellectual property that could be used to contribute to
artificial intelligence or generative artificial intelligence
capabilities.
(3) Chinese entity of concern.--The term ``Chinese entity
of concern'' has the meaning given the term in section 2741 of
title 18, United States Code, as added by section 4.
(4) Interest.--The term ``interest'', with respect to an
entity, includes an interest in the entity--
(A) held directly or indirectly through any chain
of ownership; or
(B) held as a derivative financial instrument or
other contractual arrangement with the entity,
including any financial instrument or other contract
that seeks to replicate any financial return with
respect to the entity or an interest in the entity.
(5) Military-civil fusion strategy.--The term ``military-
civil fusion strategy'' means the strategy of the Chinese
Communist Party aiming to mobilize non-military resources and
expertise for military application, including the development
of technology, improvements in logistics, and other uses by the
People's Liberation Army.
(6) Intellectual property.--The term ``intellectual
property'' means--
(A) any work protected by a copyright under title
17, United States Code;
(B) any property protected by a patent granted by
the United States Patent and Trademark Office under
title 35, United States Code;
(C) any word, name, symbol, or device, or any
combination thereof, that is registered as a trademark
with the United States Patent and Trademark Office
under the Act entitled ``An Act to provide for the
registration and protection of trademarks used in
commerce, to carry out the provisions of certain
international conventions, and for other purposes'',
approved July 5, 1946 (commonly known as the ``Lanham
Act'' or the ``Trademark Act of 1946'') (15 U.S.C. 1051
et seq.); or
(D) a trade secret (as defined in section 1839 of
title 18, United States Code).
(7) Technology.--The term ``technology''--
(A) has the meaning given that term in section 1742
of the Export Control Reform Act of 2018 (50 U.S.C.
4801); and
(B) includes--
(i) any semiconductor, circuit board,
operating system, graphics processing unit,
central processing unit, tenor processing unit,
field-programmable gate array, random access
memory, hard drive, solid-state drive, dataflow
architecture, or cloud-computing service, that
is manufactured, designed, developed, supplied,
deployed, completed, assembled, restored,
converted, or replicated to function artificial
intelligence or generative artificial
intelligence; and
(ii) any other hardware, software,
equipment, device, component, robotic,
computer, processor, network, machine,
accelerator, circuit, storage, system or
subsystem, server, or related good, tool, or
service, that is manufactured, designed,
developed, supplied, deployed, completed,
assembled, restored, converted, or replicated
to function artificial intelligence or
generative artificial intelligence.
(8) Terms from export control reform act of 2018.--The
terms ``export'', ``in-country transfer'', and ``reexport''
have the meanings given those terms in section 1742 of the
Export Control Reform Act of 2018 (50 U.S.C. 4801).
(9) United states person.--The term ``United States
person'' has the meaning given the term in section 2741 of
title 18, United States Code, as added by section 4.
SEC. 3. PROHIBITIONS ON IMPORT AND EXPORT OF ARTIFICIAL INTELLIGENCE OR
GENERATIVE ARTIFICIAL INTELLIGENCE TECHNOLOGY OR
INTELLECTUAL PROPERTY.
(a) Prohibition on Importation.--On and after the date that is 180
days after the date of the enactment of this Act, the importation into
the United States of artificial intelligence or generative artificial
intelligence technology or intellectual property developed or produced
in the People's Republic of China is prohibited.
(b) Prohibition on Export.--On and after the date that is 180 days
after the date of the enactment of this Act, the export, reexport, or
in-country transfer of artificial intelligence or generative artificial
intelligence technology or intellectual property to or within the
People's Republic of China is prohibited.
(c) Penalties.--
(1) Criminal.--A person who willfully commits, willfully
attempts to commit, or willfully conspires to commit, or aids
and abets in the commission of, the violation of a prohibition
under subsection (a) or (b) shall be subject to the criminal
penalties set forth in subsection (b) of section 1760 of the
Export Control Reform Act of 2018 (50 U.S.C. 4819) to the same
extent as a person who willfully commits, willfully attempts to
commit, or willfully conspires to commit, or aids and abets in
the commission of an unlawful act described in subsection (a)
of that section.
(2) Civil.--A person who violates a prohibition under
subsection (a) or (b) or any regulation, order, or license
issued to carry out any such prohibition shall be subject to a
civil penalty set forth in section 1760(c) of the Export
Control Reform Act of 2018 (50 U.S.C. 4819(c)) for each such
violation to the same extent as a person who commits a
violation described in that section.
(d) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Secretary of Commerce shall issue
regulations implementing this section.
SEC. 4. ARTIFICIAL INTELLIGENCE RESEARCH AND DEVELOPMENT.
(a) In General.--Part I of title 18, United States Code, is amended
by adding at the end the following:
``CHAPTER 124--RESEARCH AND DEVELOPMENT THAT BENEFITS THE PEOPLE'S
REPUBLIC OF CHINA
``Sec. 2741. Definitions
``In this chapter:
``(1) Artificial intelligence.--The term `artificial
intelligence'--
``(A) has the meaning given the term in section
238(g) of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (10 U.S.C. note
prec. 4061; Public Law 115-232); and
``(B) includes--
``(i) an artificial or automated system--
``(I) that performs tasks under
varying and unpredictable circumstances
without significant human oversight;
``(II) that can learn from
experience and improve performance when
exposed to data sets;
``(III) developed in computer
software, physical hardware, or another
context that solves tasks requiring
human-like perception, cognition,
planning, learning, communication, or
physical action;
``(IV) designed to think or act
like a human, including through
cognitive architectures or neural
networks;
``(V) that has or is derived from a
set of techniques, including machine
learning, statistics, or other data
processing or artificial intelligence
techniques, that is designed to
approximate a cognitive task;
``(VI) designed to act rationally,
including through an intelligent
software agent or embodied robot that
achieves goals using perception,
planning, reasoning, learning,
communicating, decision-making, and
acting; or
``(VII) that is intended to or
capable of interacting with humans,
detecting human emotions, determining
associations with social categories
based on biometric data, or generating
or manipulating image, audio, video, or
related material; and
``(ii) any other artificial or automated
system, software, or process that uses
computation as whole or part of a system to
determine outcomes, make or aid decisions,
inform policy implementation, collect data or
observations, or otherwise interact with humans
or communities of humans.
``(2) Control.--The term `control' has the meaning given
the term in section 800.208 of title 31, Code of Federal
Regulations (as in effect on the date of enactment of this
Act).
``(3) Corporation.--The term `corporation'--
``(A) means an entity with the business structure
of a corporation, a company, a limited liability
company, a limited partnership, a business trust, a
business association, or another similar entity; and
``(B) includes any subsidiary or branch of an
entity described in subparagraph (A) tied to an entity
described in subparagraph (A) through a series of
contracts.
``(4) Development.--The term `development' means creative
and systematic work that draws upon knowledge gained from
research and practical experience, which--
``(A) is directed toward the production of new
products or processes or improving existing products or
processes; and
``(B) like research, results in gaining additional
knowledge.
``(5) Entity of concern.--The term `entity of concern'
means--
``(A) an institution of education, including a
college and university, organized under the laws of the
People's Republic of China;
``(B) a research institution, research lab, or
research and development center organized under the
laws of the People's Republic of China;
``(C) any corporation--
``(i) that is organized under the laws of
the People's Republic of China;
``(ii) that is headquartered in the
People's Republic of China;
``(iii) that has its principal place of
business in the People's Republic of China; or
``(iv) the equity securities of which are
primarily traded on not less than 1 exchange
based within the People's Republic of China;
and
``(D) the Government of the People's Republic of
China (as defined in section 204 of the U.S.-China
Relations Act of 2000 (22 U.S.C. 6903)) and any
governmental department, agency, ministry, research
institution, research lab, research and development
center, or any other entity, subdivision, or affiliate
of the People's Republic of China, the Chinese
Communist Party, or the People's Liberation Army.
``(6) Federal agency.--The term `Federal agency' means a
department, an independent establishment, a commission, an
administration, an authority, a board or bureau of the United
States, a corporation in which the United States has a
proprietary interest, or any other agency of the executive
branch of the Federal Government.
``(7) Federal financial assistance.--The term `Federal
financial assistance' means a grant, loan, or contribution
provided by the Federal Government.
``(8) Generative artificial intelligence.--The term
`generative artificial intelligence' means an artificial
intelligence system that is capable of generating novel text,
video, images, audio, or other media based on prompts or other
forms of data provided by an individual.
``(9) Peoples's republic of china.--The term `People's
Republic of China' includes Hong Kong and Macau.
``(10) Research.--The term `research'--
``(A) means a systematic study directed toward
fuller scientific knowledge or understanding of a
subject studied; and
``(B) includes activities involving the training of
individuals in research techniques if such activities--
``(i) use the same facilities as other
research and development activities; and
``(ii) are not included in the instruction
function.
``(11) Research and development.--The term `research and
development' means a basic or applied research activity and a
development activity.
``(12) State.--The term `State' means each of the several
States of the United States.
``(13) Territory.--The term `territory' means--
``(A) the District of Columbia;
``(B) the Commonwealth of Puerto Rico;
``(C) the United States Virgin Islands;
``(D) Guam;
``(E) the Commonwealth of the Northern Mariana
Islands; and
``(F) American Samoa.
``(14) United states person.--The term `United States
person'--
``(A) has the meaning given the term in section
1711 of the National Defense Authorization Act for
Fiscal Year 1993 (22 U.S.C. 6010); and
``(B) includes--
``(i) a corporation that is incorporated or
organized under Federal law or the laws of a
State or territory;
``(ii) an institution of education,
including a college and university, organized
under Federal law or the laws of a State or
territory;
``(iii) a research institution organized
under Federal law or the laws of a State or
territory;
``(iv) a person that is--
``(I) a protected individual (as
defined in section 274B(a)(3) of the
Immigration and Nationality Act (8
U.S.C. 1324b(a)(3), wherever located or
employed; and
``(II) an alien who has been
admitted to the United States as a
lawful permanent resident; and
``(v) a person or corporation controlled by
an individual or entity described in this
paragraph.
``Sec. 2742. Unlawful acts
``(a) Research and Development.--A United States person may not
intentionally conduct, attempt or conspire to conduct, or aid and abet
in conducting research or development of artificial intelligence or
generative artificial intelligence--
``(1) within the People's Republic of China;
``(2) for an entity of concern;
``(3) on behalf of an entity of concern;
``(4) in collaboration with an entity of concern;
``(5) for a national of the People's Republic of China
working for or on behalf of an entity of concern;
``(6) on behalf of a national of the People's Republic of
China working for or on behalf of an entity of concern; or
``(7) in collaboration with a national of the People's
Republic of China working for, or on behalf of, an entity of
concern.
``(b) Transfer of Research.--A United States person may not
intentionally transfer, attempt or conspire to transfer, or aid and
abet in transferring information relating to research of artificial
intelligence or generative artificial intelligence--
``(1) within the People's Republic of China;
``(2) directly to or from the People's Republic of China;
``(3) for an entity of concern;
``(4) on behalf of an entity of concern;
``(5) directly to or from an entity of concern;
``(6) for a national of the People's Republic of China
working for or on behalf of an entity of concern;
``(7) on behalf of a national of the People's Republic of
China working for or on behalf of an entity of concern; or
``(8) directly to or from a national of the People's
Republic of China working for or on behalf of an entity of
concern.
``Sec. 2743. Penalties
``(a) Fines; Forfeiture.--
``(1) Entities.--
``(A) In general.--A United States person that
violates section 2742 that is not an individual shall--
``(i) be fined not more than $100,000,000;
and
``(ii) forfeit any license, contract,
subcontract, grant, or public benefit awarded
by any Federal agency.
``(B) Associates of entities.--An officer,
director, partner, agent, or employee that violates
section 2742 shall--
``(i) be fined not more than $1,000,000;
and
``(ii) forfeit any license, contract,
subcontract, grant, or public benefit awarded
by any Federal agency.
``(2) Individuals.--A United States person who is an
individual that violates section 2742 shall--
``(A) be fined not more than $1,000,000; and
``(B) forfeit any license, contract, subcontract,
grant, or public benefit awarded by any Federal agency.
``(b) Ineligibility for Federal Financial Assistance.--A United
States person that violates section 2742 shall be ineligible to receive
Federal financial assistance during the 5-year period beginning on the
date on which a penalty is imposed under subsection (a).
``(c) Civil Penalties.--
``(1) Civil action.--With respect to a United States person
that violates section 2742, the United States may bring a civil
action against the United States person in any district court
of the United States in which the United States person resides,
is found, or has an agent, without respect to the amount in
controversy.
``(2) Damages.--In a civil suit brought under paragraph (1)
against a United States person, the United States shall be
entitled--
``(A) to--
``(i) relief in equity to restrain and
prevent a violation or threat of violation of
section 2742; and
``(ii) other appropriate equitable relief;
``(B) to relief in damages for--
``(i) punitive and nominal damages;
``(ii) three times the amount of damages
sustained by the United States as a result of
the violation; and
``(iii) three times the cost of the civil
action, including reasonable attorney's fees;
``(C) to a civil fine of not more than $100,000,000
if the United States person is not an individual; and
``(D) to a civil fine of not more than $1,000,000
if the United States person is an individual''.
(b) Citizenship and Immigration Consequences.--Section 101(a)(43)
of the Immigration and Nationality Act (8 U.S.C. 1101(a)(43)) is
amended--
(1) in subparagraph (T), by striking ``; and'' at the end;
(2) by redesignating subparagraph (U) as subparagraph (V);
and
(3) by inserting after subparagraph (T) the following:
``(U) an offense described in section 2742 of title
18, United States Code (relating to research and
development on behalf of the People's Republic of
China); and''.
(c) Clerical Amendment.--The table of sections for part I of title
18, United States Code, is amended by adding at the end the following:
``Chapter 124--Research and Development on Behalf of the People's
Republic of China
``2741. Definitions.
``2742. Unlawful acts.
``2743. Penalties.''.
(d) Regulations.--The Attorney General, in consultation with the
Secretary of Defense, the Secretary of Commerce, the Secretary of
Education, the Director of National Intelligence, and the Director of
the Federal Bureau of Investigation, shall--
(1) promulgate regulations to enforce the prohibitions
under section 2742 of title 18, United States Code, as added by
this Act; and
(2) coordinate with the heads of other Federal agencies to
ensure the enforcement of the prohibitions described in
paragraph (1).
SEC. 5. PROHIBITION ON UNITED STATES PERSONS HOLDING AN INTEREST IN OR
PROVIDING FINANCING TO CHINESE ENTITIES INVOLVED IN
ARTIFICIAL INTELLIGENCE RESEARCH AND DEVELOPMENT.
(a) In General.--On and after the date that is one year after the
date of the enactment of this Act, a United States person is prohibited
from knowingly holding or managing an interest in, or lending money or
extending credit to, a Chinese entity of concern that--
(1)(A) conducts research or development relating to
artificial intelligence or generative artificial intelligence;
or
(B) produces goods, including hardware and software, that
incorporate research or development relating to artificial
intelligence or generative artificial intelligence; and
(2)(A) assists in the implementation of the military-civil
fusion strategy of the People's Republic of China;
(B) assists in the development of surveillance
capabilities; or
(C) is implicated in human rights abuses.
(b) Implementation; Penalties.--
(1) Implementation.--The President may exercise the
authorities provided to the President under sections 203 and
205 of the International Emergency Economic Powers Act (50
U.S.C. 1702 and 1704) to the extent necessary to carry out this
section.
(2) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of this
section or any regulation, license, or order issued to carry
out this section shall be subject to the penalties set forth in
subsections (b) and (c) of section 206 of the International
Emergency Economic Powers Act (50 U.S.C. 1705) to the same
extent as a person that commits an unlawful act described in
subsection (a) of that section.
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