H.R. 5022: No Advanced Chips for the CCP Act of 2025.

This bill, titled the No Advanced Chips for the CCP Act of 2025, aims to regulate the export of advanced artificial intelligence (AI) semiconductors to the People's Republic of China (PRC). Here’s a plain-language breakdown of the key points and processes involved in the legislation:

1. Export Requirement

The bill establishes that no person can export, reexport, or transfer an advanced AI semiconductor to China without:

• Approval from the Secretary of Commerce.
• A joint resolution from Congress approving the export.

2. Approval Process

The approval process consists of two key steps:

a. Executive Branch Approval

Before any export can be approved, the Secretary of Commerce must conduct an interagency review. This involves consultation with:

• The Secretary of Defense
• The Secretary of Energy
• The Secretary of State
• The Director of National Intelligence

During this review, the following factors will be considered:

• Impact on U.S. national security.
• Impact on U.S. technological leadership.
• Risk of military applications by China.
• Risk of human rights abuses in China.
• Availability of similar technology from other sources.
• Economic impact on U.S. companies and workers.

b. Congressional Approval

After the interagency review, within 30 days, the Secretary of Commerce must submit a report to Congress, which describes:

• The specific semiconductor involved.
• The intended recipient in China.
• The intended use for the semiconductor.
• The findings from the interagency review.
• The basis for the determination made.

A joint resolution from Congress is required to proceed with the export.

3. Exceptions

There are a few exceptions to the requirements outlined in the bill:

• Exports for humanitarian purposes, as determined by the Secretary of Commerce.
• Exports necessary for U.S. diplomatic or consular operations in China.
• Returns of semiconductors previously exported to China for repair or replacement.

4. Definitions

The bill defines key terms, including:

• Advanced AI semiconductor: Refers to specific chips exceeding defined technological thresholds in terms of processing performance, bandwidths, and interconnect capacities.
• People’s Republic of China: Includes the territory of China as well as entities controlled by the Chinese government or Communist Party.
• Person: Encompasses individuals and various forms of legal entities such as corporations and partnerships.

5. Sunset Clause

The bill includes a sunset provision, meaning it would cease to be effective three years after its enactment.

Relevant Companies

• NVDA (NVIDIA): As a leading manufacturer of advanced semiconductors, NVIDIA might be significantly impacted as the bill could limit its ability to export products to China, affecting business operations and revenue.
• INTC (Intel): Also a major player in semiconductor manufacturing, Intel could see its export market curtailed if the bill regulates advanced chip technologies bound for the Chinese market.
• AMD (Advanced Micro Devices): AMD, which develops high-performance CPUs and GPUs, could be affected similarly, limiting its ability to sell to Chinese customers and impacting financial performance.