Senate Passes Bill To Crack Down On Smuggling Of U.S. Chips To China

U.S. Senate passes bipartisan legislation, led by U.S. Sen. Mike Rounds (R-SD), to establish a whistleblower reward program to fight illegal exports of semiconductors. The bill has been forwarded to the U.S. House of Representatives for action.

“I look forward to working with our colleagues in the House to get this important legislation through Congress and to President Trump’s desk to be signed into law,” said Sen. Rounds, who in April 2025 sponsored the Stop Stealing our Chips Act, S. 1473, alongside lead cosponsor U.S. Sen. Mark Warner (D-VA).

If signed into law, the bill would amend the Export Control Reform Act to establish a whistleblower reward program at the Bureau of Industry and Security (BIS) at the U.S. Commerce Department to boost reporting of illegal exports and to halt the flow of American-made semiconductors smuggled into China.

“I am pleased that the Stop Stealing our Chips Act has passed the Senate,” Sen. Rounds said.

“The United States has taken extensive measures to prevent American-made semiconductors from falling into the wrong hands, particularly China; however, China continues to smuggle these chips into their country,” Rounds added.

As the use of artificial intelligence (AI) continues to accelerate, he pointed out that this development creates “a grave national security concern.”

“Our legislation would strengthen BIS’s export control enforcement by rewarding whistleblowers with credible information on illegal actions to come forward,” said Sen. Rounds.

According to a bill summary provided by Rounds’ staff, the legislation would require BIS to establish a public, secure platform for whistleblower submissions of reports, create a fund to pay whistleblower rewards and operate the program, funded by fines from export control violations, and provide confidentiality guarantees and anti-retaliation protections to protect whistleblowers.

The law would require that whistleblowers who provide original information that leads to the imposition of fines on offenders would be eligible for between 10 percent and 30 percent of the fines collected, with exceptions for known terrorists and criminals and federal workers operating within the extent of their employment.

Whistleblowers should receive status updates every 30 days, and credible reports should result in formal inquiries within 60 days.

Any remaining money from the fines would be remitted to the U.S. Treasury, the report states.

This comes after President Donald Trump’s high-stakes summit in China earlier this month.

Trump announced that Chinese President Xi Jinping agreed to purchase 200 Boeing jets during their high-level meeting in Beijing.

In an exclusive interview with Fox News host Sean Hannity, Trump described his discussions with Xi as “very good” and stated that the commitment from China exceeded Boeing’s expectations.

Terms of the announced agreement, such as the type of aircraft ordered and delivery timelines, were not disclosed, Fox Business noted.

Trump arrived in China on Wednesday with a delegation of prominent American business leaders to meet with Chinese officials and executives.

The trip marks Trump’s first visit to the country since 2017 and occurs amid rising tensions over trade, artificial intelligence, Taiwan, and the repercussions of the war with Iran.

Boeing CEO Kelly Ortberg was among the executives in the delegation. He recently stated that the trip represents “a meaningful opportunity” for the aircraft maker.

Although Ortberg declined to specify the number of aircraft being discussed during a recent analyst call, he expressed strong confidence that if Trump and Xi reach an agreement, it will likely include some aircraft orders.

Some reports noted that China was initially interested in buying 500 of the 737 Max aircraft from Boeing.

“I am proud to announce the site of the NATIONAL GARDEN OF AMERICAN HEROES. This magnificent exhibition of statues will be located in West Potomac Park, which we are transforming into one of the World’s most beautiful public spaces,” Trump began.