Prohibition on United States persons holding an interest in or providing financing to Chinese entities involved in artificial intelligence research and development

(a) In general On and after the date that is one year after the date of the enactment of this Act, a United States person is prohibited from knowingly holding or managing an interest in, or lending money or extending credit to, a Chinese entity of concern that— (1) (A) conducts research or development relating to artificial intelligence or generative artificial intelligence; or (B) produces goods, including hardware and software, that incorporate research or development relating to artificial intelligence or generative artificial intelligence; and (2) (A) assists in the implementation of the military-civil fusion strategy of the People's Republic of China; (B) assists in the development of surveillance capabilities; or (C) is implicated in human rights abuses. (b) Implementation; penalties (1) Implementation The President may exercise the authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to the extent necessary to carry out this section. (2) Penalties A person that violates, attempts to violate, conspires to violate, or causes a violation of this section or any regulation, license, or order issued to carry out this section shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.