Power & Market

Decoupling America’s AI Capabilities from China Act: Another Overstep

AI China

The Decoupling America’s Artificial Intelligence Capabilities from China Actintroduced by Senator Josh Hawley, R-Mo.—is another attempt to stifle free speech, the free market, infringe on personal freedoms, and damage market processes.

Senator Hawley, who introduced the legislation, said growing concerns over the threat from China’s development of AI warranted the proposal. The new bill would ban US persons from interacting with Chinese AI products, research, and technologies. Those found in violation would face up to 20 years in prison and significant fines. The aim of the bill is national security and protection of economic interests—all centered on decoupling America’s AI development from China—but the result would be stifling technology and limiting free speech and association in the online sphere.

The bill is fundamentally flawed in many respects as it interferes with the freedom of the market, it obstructs voluntary trades and collaborations of entities in the US and China, and criminalizes mutually-advantageous exchanges without state interference. Further, the bill is laden with heavy-handed and excessive punishments from the government, such as imprisonment for violating the bill.

The bill could also lead to economic inefficiencies and increase costs for both businesses and consumers. Generally speaking, this legislation runs the risk of stifling growth in innovation and technological advancement by restricting access to the Chinese AI technologies that may be critical to economic growth and prosperity.

While national security is a legitimate concern, the measures taken are disproportionate to the challenge. In regard to particular threats, the government should propose narrower and more proportionate measures rather than broad prohibitions against the AI sector in general.

Another issue is that the bill would raise the risk of China taking retaliatory measures, starting a trade war, and worsening the current economic disruption. Instead of an adversarial tone, one might consider amicable and positive international relations since free trade opens up open markets.

Whatever the case, what the Decoupling America’s Artificial Intelligence Capabilities from China Act translates to is another example of an egregious overstep in government authority.

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