The Unseen Complicity: U.S. Technology Sales to China and Their Consequences

Thu Oct 30 2025 08:52:18 GMT+0200 (Eastern European Standard Time)

Despite significant efforts to close loopholes in U.S. laws restricting technology sales to China, American firms continue to supply equipment that enhances China's surveillance capabilities. This relationship poses profound ethical and national security questions.

U.S. lawmakers have attempted multiple times since 2022 to close loopholes that allow China to bypass export restrictions by using American cloud services to access advanced technology. Despite bipartisan efforts and concerns about national security and human rights abuses, proposals to restrict technology sales have repeatedly failed under intense lobbying pressure from the tech industry. This ongoing relationship raises questions about U.S. complicity in facilitating China's surveillance state, as technologies once banned for police use are still flowing into the country. An investigation highlights a history of failures in legislation and accountability, leaving the door open for tech companies to profit while undermining global 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.

U.S. tech and telecommunications companies have spent hundreds of millions on lobbying efforts for two decades, fighting against stricter export controls that would restrict sales to China.

Despite these conditions, U.S. firms like Nvidia and AMD have negotiated deals to facilitate tech exports to China, arguing that restricting sales would hinder the American economy in favor of foreign competitors.

American companies have contributed significantly to the surveillance capabilities of China, often disregarding the consequences for human rights abuses within the country.

The persistent loopholes in U.S. export controls reflect a broader complicity, as tech firms prioritize profit over global human rights, raising alarm bells and prompting calls for reevaluation of the relationship.

Longtime activist and former Tiananmen protest leader Zhou Fengsuo sees this as a failure on the part of the U.S. to hold American companies accountable, noting that they play a critical role in advancing China's oppressive police state.

U.S. politicians from both parties have voiced concerns, citing the overwhelming influence of tech lobbyists over legislative efforts aimed at reforming or tightening restrictions on technology sales to China. Many feel that this ongoing relationship will undermine U.S. interests and prioritize profit at the expense of morality and human rights globally.

As new legislative proposals threaten to stall under industry pressure once again, the U.S. must confront the ethical implications of its technological exports and their consequences on a global scale.