DeepSeek and All Chinese AI Tech Will Be Illegal in US: Bill Drafted with 20-Year Prison Sentence

The US is escalating its stance on Chinese technology. A newly proposed bill would make using Chinese artificial intelligence (AI) applications, including the rising AI chatbot DeepSeek, illegal. 

Introduced by Senator Josh Hawley, this legislation proposes severe penalties, including up to 20 years in prison, for individuals and hefty fines for companies involved with such technologies.

This development marks a significant shift in US-China tech relations, reflecting growing concerns over national security and economic competition.

The Proposed Bill: What It Means for Chinese AI in the US

Senator Josh Hawley’s bill prohibits US individuals and companies from advancing AI capabilities connected to the People’s Republic of China. 

If passed, the legislation would not only restrict the import of Chinese AI technologies like DeepSeek but also impose strict penalties, which include up to 20 years in prison for individuals and fines reaching $1 million, with corporate fines as high as $100 million.

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This aggressive approach comes in response to DeepSeek’s rapid rise, which has disrupted markets and raised alarms within US tech circles. 

DeepSeek’s ability to match or even surpass US-developed AI models like OpenAI’s ChatGPT, using significantly fewer resources, has intensified fears of losing technological dominance. 

The bill reflects bipartisan concern, with support from both Hawley and Senator Elizabeth Warren, highlighting the urgency lawmakers feel to protect national security and maintain the US’s competitive edge in AI development.

The National Security Argument: Data, Defence, and Digital Threats

The primary justification for this legislation is national security. Lawmakers argue that Chinese AI technologies pose significant risks due to China’s data laws, which require companies to share user information with the government upon request. 

This raises fears that applications like DeepSeek could be used to collect sensitive data from US citizens, potentially compromising critical infrastructure and personal privacy.

Texas has already acted at the state level, becoming the first to ban DeepSeek and other Chinese-backed apps like RedNote from government-issued devices. 

Governor Greg Abbott cited concerns over data harvesting and foreign interference, stating that Texas will not allow the Chinese Communist Party to infiltrate state infrastructure through AI and social media platforms.

The US Navy has also joined the growing list of organisations restricting the use of Chinese AI technologies, citing potential security vulnerabilities. 

These moves underscore the broader national anxiety about technological dependencies that could be exploited for espionage or cyber-attacks.

Economic Impact: Protecting US Tech Interests

Beyond security concerns, the proposed bill reflects economic anxieties. DeepSeek’s emergence has not only challenged US technological supremacy but also caused substantial financial turbulence. 

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Its debut triggered a massive sell-off in tech stocks, wiping out over $1 trillion in market value. This financial shockwave highlighted the vulnerability of US markets to foreign tech disruptions.

Lawmakers fear that without stringent controls, Chinese AI could outpace American companies, leading to long-term economic disadvantages. 

This has prompted calls for stronger export controls, particularly concerning key AI components like advanced chips produced by US companies such as Nvidia. 

The urgency of this issue was underscored by a recent meeting between Nvidia’s CEO Jensen Huang and former President Donald Trump, where the focus was on strengthening US leadership in AI technology.

However, not everyone agrees that an outright ban is the best approach. Critics argue that such measures could stifle innovation and limit access to advanced technologies. 

They also point to the complexities of enforcing a ban on widely used digital applications, drawing comparisons to the ongoing challenges with the TikTok ban, which remains entangled in legal and political debates.

Conclusion

The proposed US bill to ban Chinese AI technologies, including DeepSeek, represents a significant escalation in the ongoing tech and trade tensions between the US and China. 

While framed as a national security measure, the legislation also reflects deep economic concerns about maintaining America’s technological leadership. 

As the debate unfolds, the outcome will likely have far-reaching implications for global AI development, international relations, and the future of digital technology governance.

Frequently Asked Questions

1. What is DeepSeek, and why is it controversial in the US?
DeepSeek is a Chinese AI chatbot that has gained popularity for its advanced capabilities, rivalling US-developed models like ChatGPT. However, potential data-sharing obligations with the Chinese government have raised security concerns.

2. What are the penalties proposed in the US bill against using Chinese AI like DeepSeek?
The bill proposes severe penalties, including up to 20 years in prison for individuals and fines of up to $1 million for companies. Companies could face fines as high as $100 million for violating the restrictions.

3. Is the US likely to pass this bill banning Chinese AI technologies?
While the bill reflects strong bipartisan concerns, its extreme measures could face significant opposition. Similar legislation, like the TikTok ban, has faced legal challenges, making the bill’s future uncertain.

Investor Caution 

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