China Technology Transfer Control Act of 2025
If enacted, HB1122 would impose significant restrictions on the exportation of specific technologies and intellectual properties vital to the national security of the United States. The legislation mandates that the President take action within specified timelines to implement regulations and conduct assessments of the technologies in question. This could result in heightened scrutiny of U.S.-China transactions, particularly in sectors where sensitive technologies, like artificial intelligence and semiconductor production, align with military objectives or human rights concerns.
House Bill 1122, titled the 'China Technology Transfer Control Act of 2025,' seeks to regulate the export and transfer of certain technologies and intellectual property to the People's Republic of China (PRC) that are deemed crucial to the U.S. national interest. The bill defines 'covered national interest technology and intellectual property' as technology that could significantly enhance China's military capacity or facilitate human rights abuses. It establishes a framework for controlled exports of such technologies by the President and requires a report from relevant agencies assessing whether these technologies should be regulated under existing export laws.
The bill may lead to tensions in U.S.-China relations as it poses financial and operational challenges for tech firms that rely on the Chinese market. Critics may argue that over-regulation could stifle legitimate technological exchanges and collaborations with China, posing risks for innovation. There may be concerns from the business community about the broad definitions used in the bill, which could encompass a wide array of technologies and lead to unintended consequences for non-military related fields.
Moreover, the bill allows the President to impose sanctions on entities that engage with the PRC under specified conditions. This provision might invite further debate about its implementation and effectiveness in curbing China’s technological advancements that threaten U.S. interests. The legislative intent demonstrates a balance between safeguarding national security and maintaining a competitive edge in the global technology race.