The China Technology Transfer Control Act of 2025, known as H.R. 1122, is a proposed law aimed at regulating the flow of certain technologies from the U.S. to China. This bill seeks to prevent China from gaining access to technology that could enhance its military capabilities or be used for human rights abuses.
What This Bill Does
The China Technology Transfer Control Act of 2025 introduces new rules to control the export, re-export, or transfer of specific technologies to China. These technologies are considered vital to U.S. national interests and could significantly enhance China's military power if acquired. The bill specifically targets technologies that align with China's "Made in China 2025" policy, which aims to boost China's dominance in sectors like artificial intelligence, semiconductors, and biotechnology.
Under this bill, the President is required to issue regulations within 180 days to enforce these controls. A joint report from the State and Commerce Departments is also mandated within 90 days to ensure these new rules align with existing export regulations. The bill also introduces sanctions, blocking property and prohibiting transactions for foreign or Chinese individuals who violate these export laws.
Additionally, the bill mandates the creation of a list by the United States Trade Representative (USTR) that includes products from industries such as civil aircraft and semiconductors. These products are identified based on their potential to displace U.S. exports due to Chinese government support.
Why It Matters
This bill could have significant implications for both U.S. and global businesses. For American tech companies, especially those in sectors like AI and semiconductors, this means stricter controls on what can be sold to China. This could protect U.S. national security by preventing the transfer of sensitive technologies that might enhance China's military capabilities.
For everyday Americans, the bill could impact the availability and cost of consumer electronics, as many of these products rely on components that are part of global supply chains involving China. However, it could also help protect American jobs in technology manufacturing by reducing competition from Chinese products.
Key Facts
- Cost/Budget Impact: No specific budget estimates or funding sources are provided in the bill.
- Timeline for Implementation: Regulations must be issued within 180 days of enactment; a joint report is due in 90 days.
- Number of People Affected: U.S. tech firms, Chinese entities, and foreign companies involved in tech exports could be impacted.
- Key Dates: Introduced on February 7, 2025; no enactment date yet.
- Precedents: Similar to past legislation like the Export Control Reform Act of 2018 and the CHIPS Act of 2022.
- Excludes Goods Importation: The bill does not sanction the importation of goods from China.
- Broad Definitions: The bill defines "Chinese person" broadly, potentially affecting a wide range of entities.
Arguments in Support
- Protects U.S. National Security: By restricting technology transfers, the bill aims to prevent China from using U.S. technology to enhance its military capabilities.
- Counters China's Industrial Policies: It targets products that receive Chinese government support, which could otherwise erode U.S. market share.
- Addresses Human Rights Abuses: The bill blocks technologies that could be used for surveillance or other human rights violations in China.
- Strengthens Export Controls: Provides the President with tools and sanctions to enforce export regulations effectively.
- Deters Third-Party Transfers: Sanctions on foreign entities close loopholes that might allow technology to reach China indirectly.
Arguments in Opposition
- Overly Broad Definitions: Critics argue that the bill's definitions of "covered" technologies are too vague and could hinder legitimate trade.
- Harms U.S. Businesses: Sanctions could disrupt supply chains and harm U.S. companies that partner with foreign firms.
- Implementation Burdens: The bill could strain government agencies tasked with enforcing the new regulations without additional funding.
- Retaliation Risks: There is a concern that China might retaliate with its own export bans, affecting global markets.