US Lawmakers Introduce ‘No Adversarial AI Act’ To Blacklist Chinese AI From Federal Agencies

A bipartisan group of U.S. lawmakers on Wednesday introduced a bill to ban federal agencies from using artificial intelligence models developed in China in both houses of Congress.

The legislation, officially called the ‘No Adversarial AI Act,’ aims to block AI tools from China, Russia, Iran, and North Korea from being used in the U.S. government, including those like DeepSeek. It is being led by Representative John Moolenaar and Raja Krishnamoorthi, both of whom lead the House Select Committee on the Chinese Communist Party.

The iShares Semiconductor ETF (SOXX) was in green on Wednesday, rising 0.5% during morning trade, pulled by Nvidia’s (NVDA) stock trading 3% higher and Broadcom (AVGO) shares climbing 1%. 

If passed, the bill would require the Federal Acquisition Security Council to maintain and regularly update a list of banned AI models from those countries. Federal agencies would be prohibited from buying or using these technologies unless they receive a special exemption from Congress or the Office of Management and Budget.

The legislation also includes a process to remove models from the list if they are proven to be free from influence by foreign adversaries.

“The U.S. government should not be sending our data to China,” Krishnamoorthi said during a hearing of the Select Committee on the CCP introducing the bill. 

This legislation is being introduced into Congress after reports that Chinese AI startup DeepSeek is helping China with its military and intelligence operations. "This effort goes above and beyond open-source access to DeepSeek's AI models," a senior U.S. official told Reuters. According to him, DeepSeek has access to “large volumes” of Nvidia’s high-end H100 chips acquired through shell companies in Southeast Asia to evade U.S. export controls.

The U.S. government has intensified restrictions on Chinese access to advanced U.S. AI chips and related technologies, since President Donald Trump took office in January. 

Despite pressure from industry leaders like Nvidia CEO Jensen Huang, who argued that export controls were hurting U.S. companies and were ineffective in stopping China’s technological rise, the Trump administration has resisted relaxing restrictions, especially for China. 

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