China Gets Restricted AI Chips Via Smuggling, House Panel Says

April 16, 2026, 2:25 PM UTC

The House Select Committee on China releases a report detailing the “legal and illegal means” that China allegedly uses to expand its semiconductor production capacity and AI development.

  • China uses “sophisticated smuggling networks to acquire restricted AI chips,” according to the panel in an emailed statement about the report
  • It also accuses China of extracting “frontier capabilities from American AI developers through industrial-scale fraud”

To contact the reporter on this story:
Alexander Pearson in Frankfurt at apearson50@bloomberg.net

To contact the editors responsible for this story:
Anton Wilen at awilen@bloomberg.net

Bryan Pietsch

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