The "Decoupling America's Artificial Intelligence Capabilities from China Act of 2025" seeks to significantly restrict the involvement of United States persons and entities in advancing artificial intelligence (AI) capabilities within the People's Republic of China (PRC). This legislation introduces broad prohibitions on the import and export of AI and generative AI technology and intellectual property to or from the PRC. Specifically, 180 days after enactment, it will be unlawful to import AI technology or IP developed in the PRC into the U.S., or to export such technology or IP to or within the PRC.

The bill establishes a new chapter in title 18 of the U.S. Code, outlining unlawful acts related to AI research and development. It prohibits any United States person from intentionally conducting, attempting, or aiding AI or generative AI research or development within the PRC, or for, on behalf of, or in collaboration with a Chinese entity of concern. This prohibition extends to transferring information related to AI research to or from the PRC or such entities. Chinese entities of concern are broadly defined to include educational institutions, research labs, corporations, and governmental bodies of the PRC, the Chinese Communist Party, or the People's Liberation Army.

Furthermore, the Act imposes severe penalties for violations, including substantial fines up to $100,000,000 for entities and $1,000,000 for individuals, forfeiture of federal awards, and a five-year ineligibility period for federal financial assistance. Violations may also lead to civil actions by the U.S. government, seeking injunctive relief and significant damages. Notably, an offense under these provisions would be classified as an aggravated felony under immigration law, carrying potential citizenship and immigration consequences.

Finally, the bill prohibits United States persons from knowingly holding an interest in, managing, or providing financing to a Chinese entity of concern that is involved in AI research or production and also assists the PRC's military-civil fusion strategy, surveillance capabilities, or human rights abuses. This investment and financing ban takes effect one year after enactment and grants the President authority under the International Emergency Economic Powers Act for implementation and enforcement. The Secretary of Commerce and the Attorney General are tasked with issuing regulations to implement these comprehensive restrictions.