Description: The Chairman of the House Select Committee on China, John Moolenaar, introduced a bipartisan initiative to ban the usage of all AI products originating from China that were used by the US Federal Government. He requested support in introducing the bill from both parties, referencing recent reports in his speech that DeepSeek was closely connected to the Chinese government, military and intelligence services. Moolenaar also addressed crucial problems referring to US chip exports to China and the necessity for substantial overview on companies who develop and manufacture those components, especially the ones that have significant market presence in China. Democrat representatives in the House Committee on China supported the initiative by stating that China’s infiltration into the US information systems through the usage of AI would cause irreparable damage on US interests and threaten the country’s national security. The bill would instruct the Federal Acquisition Security Council to conduct a comprehensive analysis of problematic AI systems being used by US government officials.
Impact: In the shadows of the trade ceasefire between China and the US, the vigorous war on AI market dominance threatens to impose complex dimensions on a potential trade agreement in the future. Both countries are exploiting their market positions to subdue each other’s efforts when it comes to manufacturing and developing AI systems as the most prominent digital market which would represent a crucial geoeconomic asset in the future. DeepSeek’s controversial connection to the Chinese government has precipitated countries to either limit or ban the app wholesale over concerns regarding data privacy and the collection of information. The expected introduction of the bipartisan bill which would effectively ban the usage of Chinese AI on the US market could compromise the sensitive trade ceasefire and prolong the US – China trade war, further destabilizing the global markets.