Politics May 19, 2026 01:26 PM

Bipartisan Bill Would Back U.S. AI Exports to Allies to Counter Chinese Competition

Legislation proposes State Department office and $500 million fund to help allied governments buy American AI tools, chips and telecom equipment

By Caleb Monroe

A bipartisan pair of U.S. senators will introduce legislation aimed at reducing the appeal of Chinese artificial intelligence and digital technology offerings among foreign governments. The bill would create a State Department office to subsidize allied purchases of U.S. technology, streamline procurement, and establish a $500 million financing vehicle to support those efforts while aligning with an existing U.S. initiative to secure critical AI supply chain inputs.

Bipartisan Bill Would Back U.S. AI Exports to Allies to Counter Chinese Competition

Key Points

  • Bipartisan sponsors propose a State Department office to subsidize allied purchases of U.S. AI and digital technologies and to streamline procurement.
  • The bill would create a $500 million fund to help finance the program and facilitate sales of American AI models, chips, telecoms equipment, cybersecurity products, biotech and cloud systems.
  • The legislation aims to support the Pax Silica initiative by reducing dependence on China for critical minerals and AI supply chain inputs, at a time when China invested a record $213 billion in its Belt and Road initiative last year.

Summary: Two U.S. senators from different parties are preparing to introduce a bill intended to blunt the overseas sales of Chinese artificial intelligence and related technologies by making it easier and more affordable for allied governments to buy American alternatives. The proposal would stand up a new office inside the State Department, provide procurement support and seed a $500 million fund to underwrite purchases of U.S. AI models, chips, telecoms and other digital technologies.

Under the proposal, bipartisan sponsors would establish a mechanism to subsidize allied governments' purchases of U.S. technology and to simplify the procurement process for those buyers. The legislation names Democrat Jeanne Shaheen of New Hampshire and Republican Pete Ricketts of Nebraska as its sponsors and would provide funding to support the program if it is enacted.

The text of the bill states that "Foreign government partners are increasingly turning towards strategic competitors like... China to procure cyber and digital technologies due to their low-cost." It warns that such buying patterns create "supply-chain vulnerabilities" and highlights the risk of "dependence on strategic competitors whose governments may compel access to data, networks, or systems, undermining the cybersecurity and strategic autonomy of the procuring government."

The legislative measure is intended to reinforce the Trump administration's Pax Silica initiative, which focuses on reducing reliance on China and deepening cooperation among allies by securing access to critical minerals and other inputs crucial to AI supply chains.

Specific categories of goods the bill would aim to make more accessible to foreign governments include AI models, chips and related software and hardware, telecoms equipment, cybersecurity products, biotechnology and cloud computing systems, among other items. Advocates of the effort say the combination of procurement assistance and financing is designed to shift purchase decisions toward U.S. suppliers.

Separately, the bill's introduction coincides with data showing China invested a record $213 billion last year into its Belt and Road initiative, based on research from Griffith University in Australia and the Green Finance & Development Center in Shanghai. The Belt and Road program - unveiled by President Xi Jinping in 2013 - is described in the research as a vehicle to boost trade, absorb overcapacity, secure supply chains and expand influence with more than 150 countries and international organizations.

The Chinese Embassy in Washington did not immediately respond to a request for comment on the proposed U.S. legislation.


Sectors affected:

  • Technology - AI development, chipmakers, cloud computing and software providers
  • Telecommunications - vendors of networks and equipment
  • Defense and cybersecurity - providers of secure systems and related services

Risks

  • Supply-chain vulnerabilities from reliance on strategic competitors - the bill cites the risk that competing governments could be compelled to grant access to data, networks or systems, which could undermine procuring governments' cybersecurity and autonomy (affects technology and cybersecurity sectors).
  • Cost-driven procurement choices by foreign governments - the bill notes partners are turning to lower-cost suppliers like China for cyber and digital technologies, which could crowd out U.S. vendors (affects technology, telecoms and cloud markets).
  • Geopolitical influence from large-scale overseas investment - China's record $213 billion deployment into its Belt and Road initiative may strengthen its ability to supply and influence more than 150 countries and organizations, complicating U.S. efforts to shift procurement (affects trade, infrastructure-linked markets and strategic supply chains).

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