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Reading: US China AI Bill Seeks $500M Allies Fund
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A digital graphic shows U.S. and Chinese flags above a circuit board with an AI chip in the center.
PhotoNews Pakistan > Tech > US China AI Bill Seeks $500M Allies Fund
Tech

US China AI Bill Seeks $500M Allies Fund

Web Desk
By Web Desk Published May 20, 2026 2 Min Read
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U.S. and Chinese flags appear over an AI chip graphic, symbolizing growing competition in artificial intelligence and semiconductor technology. Image Credit: Fox News
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A bipartisan US-China AI bill would create a $500 million fund to help allied governments buy American artificial intelligence and digital technology instead of Chinese systems, Reuters reported.

The legislation is sponsored by Democratic Senator Jeanne Shaheen of New Hampshire and Republican Senator Pete Ricketts of Nebraska, according to a copy of the bill seen by Reuters.

The proposal would establish an office inside the US State Department to subsidise foreign government purchases of American technology and simplify procurement.

Two Chinese government mouthpieces sat on a U.S. Senate platform last month & argued America should slow its own AI buildout. @BTCpolicy documents the full influence operation behind that moment — CCP state media, $2B in foreign dark money, & a Shanghai-based network. This…

— Robert C. O'Brien (@robertcobrien) May 20, 2026

The measure seeks to support President Donald Trump’s Pax Silica initiative, which aims to reduce dependence on China and strengthen allied access to critical minerals and other inputs for artificial intelligence supply chains.

The bill says foreign government partners increasingly buy low-cost cyber and digital technologies from strategic competitors such as China. It warns that such purchases can create supply-chain risks and expose data, networks and systems.

American AI chip makers are selling advanced semiconductors to CCP-controlled entities—effectively arming our top adversary in the AI race.

Three bipartisan bills aim to stop it:

– Chip Security Act—requires location tracking on advanced chips to prevent smuggling to China
– AI…

— The Daily Signal (@DailySignal) May 19, 2026

The bill would cover American AI models, chips, software, hardware, telecoms equipment, cybersecurity products, biotechnology and cloud computing systems. The Chinese Embassy in Washington did not immediately respond to Reuters’ request for comment.

The move comes as China expands its Belt and Road Initiative, launched by President Xi Jinping in 2013. Research by Griffith University and the Green Finance & Development Center in Shanghai said China invested a record $213 billion in the programme last year.

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