US AI import ban would reach farther than DeepSeek, but it’s a longshot

On Jan. 29, US Republican Senator and noted China hawk Josh Hawley introduced the Decoupling America’s Artificial Intelligence Capabilities from China Act, which, while not mentioning it by name, would effectively ban AI software firm DeepSeek if put into practice. 

Citing concerns over intellectual property, the bill would ban any and all US nationals and firms working within the country from conducting research and development with China-based entities or persons. 

Violations would carry a fine of $1 million for individuals and $100 million for companies, and violators would be forced to forfeit any “license, contract, subcontract, grant, or public benefit awarded by any Federal agency.”

The bill would also ban the import or export of AI tech to or from China, which would serve as an effective ban on DeepSeek.

Arriving amid increasing tensions between the United States and China after US President Donald Trump levied 10% additional tariffs on Chinese goods, critics say Sen. Hawley’s proposal would kill open AI development and competitiveness — but it could just be saber-rattling.

For show? Hawley’s AI import ban takes aim at China

Tensions between the US and China are at a record high as Trump and the Republicans have promised to take action over what they’ve called unfair trade practices on the part of the Chinese government and companies located in the country.

Of particular concern are the reported abilities of China to influence public opinion, exploit favorable trade conditions and gain access to American intellectual property.

Sen. Hawley has been fairly hawkish toward China on all these points. Last year, he introduced a bill that would put tariffs on electronic vehicles produced in China.

He also participated in the public hearings featuring TikTok CEO Shou Chew ahead of the US ban on the social media app, wherein he claimed TikTok put American’s identity and usage data in the hands of a “foreign, hostile government.”

Then there’s his most recent bill — submitted just a week after DeepSeek’s debut sent tech stocks and crypto spiraling — which cites concerns about Chinese firms exploiting AI technologies developed in America for their own benefit.

Related: Here’s why DeepSeek crashed your Bitcoin and crypto

But while it’s clear Hawley is no friend of China, observers doubt whether his most recent proposed legislation has a chance in Congress.

According to Aaron Brogan, a lawyer focused on cryptocurrency and emerging technology regulation, “Some senators pride themselves on being able to react promptly to current events. Senator Hawley is definitely one of those.”

“The large, large majority of being a senator or congressperson is generating publicity and posturing.”

Republicans currently have a 53-47 majority in the Senate and a “historically narrow majority” in the House of Representatives, noted Brogan. This means any legislation that doesn’t have broad bipartisan support is likely “dead on arrival.”

The bill also has no co-sponsors who could help expedite the process.

Technical problems with the bill

Partisanship and Congressional procedure aside, there are other concerns about the bill’s contents. Ben Brooks, a fellow at Harvard’s Berkman Klein Center For Internet & Society, noted its scope is incredibly broad.

According to Brooks, Sen. Hawley’s bill makes “no distinction based on risk” and contains no thresholds on capability, nor does it direct any agency to determine those thresholds. Furthermore, it makes no exceptions for open-source technology. “Everything touching AI is swept into scope.”

While this could mean the end of open-source AI in the United States, China hawks in the US government may view that as an acceptable sacrifice to decouple the US and Chinese economies.

According to Brogan, hawks may wish to expedite this “uncoupling” sooner rather than later: “If the war in Taiwan comes before our economies are decoupled, it will be incredibly painful economically, and China (as a resource exporter) may be able to bottleneck certain crucial mineral inputs from the US military.”

But for Brooks, this isn’t just about the US and China. He said it would “do untold damage to the little guy” and would require a massive expansion of police powers to enforce, all the way to increasing global reliance on Chinese technology.

“Decoupling from China? More likely: decoupling the rest of the world from the US.”

Indeed, the bill’s possible ramifications for the economy and American technology are what make it all the more unlikely to pass, per Brogan.

“It would be very expensive and disruptive to industry,” he said. “And some industry, like Tesla, for example, is both highly interconnected with China and quite influential at the moment.”

DeepSeek sparks privacy, data security concerns worldwide

While Sen. Hawley’s bill may die in committee, the US and other countries across the globe are still introducing measures to protect against the perceived threat of China’s AI capabilities. 

On Feb. 6, lawmakers in Washington are expected to introduce a bill that would ban DeepSeek from US government devices. Texas Governor Greg Abbott has already issued a similar ban for state employees, saying, “Texas will not allow the Chinese Communist Party to infiltrate our state’s critical infrastructure through data-harvesting AI and social media apps.”

Related: DeepSeek privacy concerns raise international alarm bells

According to CNBC, the US Navy has already banned the app for personal or professional use over “potential security and ethical concerns associated with the model’s origin and usage.”

Elsewhere in the world, Italy has issued an outright ban on DeepSeek, while in Taiwan and Australia, government agencies have been directed not to use DeepSeek over privacy and data harvesting concerns. 

Investigations into DeepSeek’s data practices are also underway in Ireland, France, India, South Korea and Belgium.

Chinese AI firms may not get the full, sweeping ban that hawks would like, but it seems clear that limitations of some sort are inevitable.

Cointelegraph reached out to Hawley for comment but did not receive a response by publishing time.

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