Latest -US Senator Proposes Bill to Ban Chinese AI, Including DeepSeek AI, with Hefty Fines and Jail Time
DeepSeek’s rapid rise sparks concerns, prompting legislation aimed at safeguarding US AI dominance and restricting China’s access to American AI technology.
The rapid emergence of DeepSeek AI, a Chinese AI model rivaling the likes of ChatGPT, has sent ripples of concern through US businesses and policymakers, prompting legislative action.
In response to growing anxieties over China’s advancements in artificial intelligence, Republican Senator Josh Hawley has introduced a new bill that could have significant implications for individuals and businesses alike.
This bill seeks to impose severe penalties on those utilizing China-made AI technologies, such as DeepSeek, within the United States.
Hawley’s Bill: Aimed at Protecting US AI Dominance
The proposed law explicitly aims to prevent US entities from using China’s AI capabilities and establishes a comprehensive ban on the importation of AI technology or intellectual property originating from China.
If enacted, this prohibition would take effect 180 days after the law is passed, making it illegal for individuals or businesses to use, distribute, or integrate Chinese AI technologies within the US market.
Steep Penalties for Violators
Violators of the proposed law would face harsh consequences, including substantial fines and potential imprisonment.
Entities found in violation could face fines of up to $100 million, while individuals could be penalized up to $1 million.
Additionally, civil penalties would amount to three times the damages incurred by the US government. Offenders would also be barred from obtaining federal contracts, licenses, and financial assistance for five years, effectively cutting them off from critical government resources and funding opportunities.
DeepSeek Under Scrutiny
Although DeepSeek is not explicitly named in the bill, the AI startup has already drawn scrutiny from US officials. Key US institutions, such as the US Navy and NASA, have already banned the use of DeepSeek, signaling mounting fears over potential security risks associated with the technology.
Restricting the Flow of AI Expertise to China
Beyond restricting Chinese AI imports, the bill also seeks to restrain the flow of AI knowledge and expertise to China. It would prohibit the export, re-export, or in-country transfer of AI technology from the US to China.
Moreover, US citizens would be barred from engaging in AI research and development within China, collaborating with Chinese organizations, or sharing AI research with Chinese nationals linked to the Chinese government or military.
Safeguarding US Technological Edge
This legislation aims to safeguard US dominance in AI development while intensifying trade restrictions against China. It reflects a growing concern among US lawmakers about the potential for China to surpass the US in AI capabilities and the potential national security implications.
The bill seeks to not only restrict access to Chinese AI within the US but also prevent the sharing of American AI expertise with China, effectively attempting to contain China’s AI advancements.
The Broader Context
This legislative push occurs within a broader context of increasing competition and tension between the US and China in the field of technology.
AI is viewed as a critical technology with far-reaching implications for economic competitiveness, national security, and global influence.
The proposed bill signals a hardening stance towards China in the tech sector and a determination to maintain US leadership in AI.
Which countries and govt agencies have banned DeepSeek’s AI, what is the reason?
The privacy watchdogs of countries such as Ireland, France, Belgium, and Netherlands have raised concerns about the DeepSeek app’s data collection practices.
In the US, several federal agencies have instructed its employees against accessing DeepSeek, and “hundreds of companies” have requested their enterprise cybersecurity firms such as Netskope and Armis to block access to the app, according to a report by Bloomberg.
We store the information we collect in secure servers located in the People’s Republic of China,” the DeepSeek app’s privacy policy reads.
Perhaps the biggest concern over DeepSeek is that user data could be shared with the government in China, which has laws that require companies to share data with local intelligence agencies upon their request.
But these data protection concerns may only exist with the application layer of DeepSeek’s AI, as running some of its AI models locally reportedly ensures that the company does not get its hands on sensitive user data.
As a result, the Indian government plans to host DeepSeek’s AI model on local servers. “Data privacy issues regarding DeepSeek can be addressed by hosting open source models on Indian servers
Countries that have banned the use of DeepSeek’s AI
Italy: Last month, Italy became one of the first countries to ban DeepSeek’s AI. The AI chatbot app, powered by its foundational AI models V3 and R1, has reportedly disappeared from app stores in the country.
This came days after the country’s privacy watchdog sought information on how the Chinese AI startup handles user data.
It had given DeepSeek 20 days to reply to the notice. The Italian Data Protection Agency (DPA) was reportedly acting based on a complaint filed by consumer coalition group, Euroconsumers.
Taiwan: Stating that DeepSeek “endangers national information security”, Taiwan’s Ministry of Digital Affairs has banned government agencies from using the company’s AI.
Public sector workers and critical infrastructure facilities run the risk of cross-border transmission and information leakage by using DeepSeek’s technology, according to TechCrunch.
The ban also reportedly covers public schools and state-owned enterprises in Taiwan
Australia: Government workers in Australia have been prohibited from installing and using DeepSeek’a AI app over security concerns.
All government entities have been mandatorily directed by the Secretary of the Department of Home Affairs to “prevent the use or installation of DeepSeek products, applications and web services and where found remove all existing instances of DeepSeek products, applications and web services from all Australian Government systems and devices.” The ban is not applicable to the country’s private citizens, as per Reuters.
South Korea: Several ministries and departments within the South Korean government have blocked access to DeepSeek’s AI technology, citing security concerns.
This includes the country’s industry ministry, defence ministry, foreign ministry, and the State-run Hydro and Nuclear Power, as per Reuters.
