U.S. senators draft China AI bill

- Senators Jeanne Shaheen and Pete Ricketts introduced the U.S. Tech PATH Act on May 19 to steer partner-country tech purchases toward U.S. suppliers. (foreign.senate.gov) - The bill would create a $500 million fund and a State Department office to subsidize allied purchases of American cyber and digital technology. (economictimes.indiatimes.com) - The measure now heads to Congress, where Shaheen and Ricketts are seeking support for the State Department-led procurement program. (foreign.senate.gov)

Two U.S. senators are trying to move the U.S.-China technology contest beyond export bans and into overseas sales campaigns. On May 19, Democrat Jeanne Shaheen of New Hampshire and Republican Pete Ricketts of Nebraska introduced the U.S. Technology Procurement and Access to Trusted Hardware Act, or U.S. Tech PATH Act, according to a Senate Foreign Relations Committee release and a copy of the legislation described by Reuters. (foreign.senate.gov) The bill is aimed at helping allied governments buy American cyber and digital technology instead of Chinese systems. Reuters reported the proposal was designed in part to counter Chinese sales of AI tools overseas. (economictimes.indiatimes.com) That makes the bill different from the export-control fights that have dominated Washington’s China tech policy. Instead of mainly limiting what China can buy from the United States, the measure would try to shape what third countries buy from either side. (foreign.senate.gov) The legislation would do that through financing, procurement support and a new State Department program focused on foreign demand for U.S. technology. ### What are the senators actually proposing? The U.S. Tech PATH Act would establish a State Department-led U.S. Technology Procurement Program for foreign allies and partners, the Senate release said. That program would be designed to streamline purchases of American and allied cyber and digital technology and build longer-term technology partnerships with foreign counterparts. (foreign.senate.gov) Reuters reported the bill would also create an office within the State Department to subsidize purchases by allied governments of U.S. technology and streamline the procurement process. If enacted, the program would be backed by a fund worth $500 million, according to Reuters’ account of the draft. ### Why does the bill focus on third countries? (foreign.senate.gov) Shaheen said on May 19 that “economic and national security is increasingly defined by a nation's ability to adopt and deploy cyber and related technologies,” according to the Senate Foreign Relations Committee release. She said the United States needed to improve support for allied and partner nations seeking American cyber and digital technology. (foreign.senate.gov) Ricketts said there was “a clear demand from allies and partners for more access to U.S. technology.” He said the bill would promote exports of “the full American AI tech stack and related critical infrastructure.” Reuters separately reported the legislation was intended to counter Chinese AI tool sales overseas, tying the proposal directly to competition for foreign government customers. (usnews.com) ### How is this different from earlier China tech measures? Washington’s earlier AI and semiconductor measures have largely centered on restricting sales into China or tightening rules on equipment and chip exports. By contrast, this bill is framed around helping partner countries procure U.S. systems while keeping those purchases consistent with U.S. export controls and cybersecurity standards, according to the Senate release. (foreign.senate.gov) That structure suggests the sponsors want the U.S. government to play a more direct role in overseas commercial competition. Reuters said the bill would seek to bolster the Trump administration’s “Pax Silica” initiative, which the report described in the context of broader efforts to compete with China in advanced technology markets abroad. (foreign.senate.gov) ### What did the senators say about China? Shaheen said “America’s adversaries like China understand this,” referring to the strategic value of cyber and related technologies, according to the Senate release. She said the measure would help the United States compete by improving how it delivers those capabilities to foreign partners. (foreign.senate.gov) Ricketts said, “Unlike Communist China, our technology is proven, reliable, and secure.” He said the bill would “reduce vulnerabilities from foreign adversaries and ensure U.S. and allied tech supremacy,” according to the Senate release and Reuters’ reported details. ### What happens next in Congress? (economictimes.indiatimes.com) The bill was introduced on May 19 and will need to move through the legislative process before any State Department office or financing program can be created. The Senate Foreign Relations Committee release said full text of the bill was available, and Reuters reported the sponsors planned to unveil the measure on Tuesday. The next concrete step is whether Shaheen, Ricketts and other lawmakers can assemble support for the proposed procurement program and the $500 million fund. (foreign.senate.gov)

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