15 February 2025

The Hawley Act Threatens AI Innovation

Ritwik Gupta & Andrew Reddie

“What protection teaches us, is to do to ourselves in time of peace what enemies seek to do to us in time of war.” —Henry George

On Jan. 29, Sen. Josh Hawley (R-Mo.) introduced the Decoupling America’s Artificial Intelligence Capabilities from China Act of 2025 (DAAICCA) as a sweeping attempt to sever U.S. artificial intelligence (AI) development from Chinese influence.

The bill, following hard on the heels of Chinese advances in AI and accusations of impropriety from U.S. technology companies, argues that stringent restrictions on the import, export, and collaboration of AI technologies between the United States and the People’s Republic of China (PRC) are necessary for both national security and America’s economic independence. However, the bill’s rigid structure fails to take into account the globalized nature of software, hardware, and talent supply chains that benefit U.S. firms aiming to develop AI technologies. Ultimately, the DAAICCA will disrupt the open-source development of new tools and methods and create significant enforcement challenges.

Taken together, the limitations of the bill, as currently drafted, will stifle American AI progress.

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