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flag US officials confirm AI chip smuggling to China, sparking bipartisan calls for stronger export controls and increased enforcement.

flag US officials confirmed advanced American AI chips are being smuggled to China, prompting bipartisan concern over national security and Beijing's military and AI ambitions. flag At a congressional hearing, Assistant Secretary David Peters acknowledged the smuggling as a top enforcement priority, citing nearly $278 million in penalties in fiscal year 2025, including major settlements with Cadence Design Systems and Applied Materials. flag Lawmakers criticized insufficient enforcement capacity, noting only 11 export control officers conduct overseas checks, and called for stronger penalties and a 123% budget increase for fiscal year 2026 to expand staffing and oversight. flag While no evidence of deliberate delays in China was found, verification processes remain slow. flag The administration emphasized that violations will face severe financial and legal consequences, underscoring the need for robust export controls to protect US technological leadership.

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