US Continues to Enable China’s Surveillance through Tech Exports

Thu Oct 30 2025 10:30:34 GMT+0200 (Eastern European Standard Time)

Despite export bans on artificial intelligence technology, U.S. firms are still facilitating surveillance in China via cloud services and loopholes, raising concerns over national security and human rights abuses.

U.S. lawmakers have repeatedly attempted to tackle a significant loophole allowing China to access American AI technology by circumventing export restrictions through cloud services. Over the past year, Congress has been stymied in its efforts to impose stricter regulations due to powerful lobbying from tech companies. Critics argue that this ongoing practice risks further entrenching China's surveillance state while undermining international human rights.

U.S. lawmakers have tried four times since September last year to close what they called a glaring loophole: China is getting around export bans on the sale of powerful American AI chips by renting them through U.S. cloud services instead.

But the proposals prompted a flurry of activity from more than 100 lobbyists from tech companies and their trade associations trying to weigh in, according to disclosure reports.

The result: All four times, the proposal failed, including just last month.

As leaders Donald Trump and Xi Jinping prepare for a long-heralded meeting Thursday, the sale of U.S. technology to China is among the thorniest issues the U.S. faces, with billions of dollars and the future of tech dominance at stake. But the tough talk about China obscures a deeper story: Even while warning about national security and human rights abuse, the U.S. government across five Republican and Democratic administrations has repeatedly allowed and even actively helped American firms to sell technology to Chinese police, government agencies and surveillance companies, an Associated Press investigation has found.

And time after time, despite bipartisan attempts, Congress has turned a blind eye to loopholes that allow China to work around its own rules, such as cloud services, third-party resellers, and holes in sanctions passed after the Tiananmen massacre.

For example, despite U.S. export rules around advanced chips, China bought $20.7 billion worth of chipmaking equipment from U.S. companies in 2024 to bolster its homegrown industry, a report from a congressional committee this month warned.

This reluctance to act reflects the tremendous wealth and power of the tech industry, which is more visible than ever under the Trump administration. And in recent months, the president himself has struck grand deals with Silicon Valley firms that even more closely tie the U.S. economy to tech exports to China, giving taxpayers a direct stake in the profits for the first time.

In August, Trump announced a deal with chipmakers Nvidia and AMD to lift export controls on sales of advanced chips to China in exchange for a 15% cut of the revenue, despite concerns from national security experts that such chips will end up in the hands of Chinese military and intelligence services.

Longtime Chinese activist Zhou Fengsuo said the U.S. government is letting American companies set the agenda and ignoring how they help Beijing surveil and censor its own people. In 1989, Zhou was a student leader during the Tiananmen protests, where hundreds and possibly thousands were shot and killed by the Chinese government. Zhou was arrested and imprisoned.

Now a U.S. citizen, Zhou testified before Congress in 2024, calling on Washington to investigate the involvement of American tech companies in Chinese surveillance.An AP investigation in September found that American companies to a large degree designed and built China’s surveillance state, playing a far greater role in enabling human rights abuses than previously known.

“It’s driven by profit, and that’s why these strategic discussions have been silenced or delayed,” Zhou said. “I’m extremely disappointed. … this is a strategic failure by the United States.”