US Export Loopholes Enable Chinese Surveillance: Investigative Report

Thu Oct 30 2025 05:42:30 GMT+0200 (Eastern European Standard Time)

An extensive investigation reveals how U.S. technology companies are circumventing export bans and assisting China in developing advanced surveillance systems, despite bipartisan concerns over human rights abuses.

Since September last year, U.S. lawmakers have repeatedly failed to close loopholes that allow China to bypass export bans on American AI chips. While Congress has attempted to tighten controls, powerful lobbying from tech companies has thwarted progress. An AP investigation highlights how, amid rising tensions, American technology is increasingly instrumental in China's surveillance apparatus, raising ethical concerns among lawmakers and human rights advocates. Notably, despite explicit restrictions, surveillance systems and tech tied to human rights violations continue to be sold, revealing a complex relationship between U.S. companies and the Chinese state.

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

However, these proposals faced fierce opposition from over 100 lobbyists representing tech companies, resulting in all four attempts to amend the legislation failing, including just last month.

As key figures like Donald Trump and Xi Jinping prepare for critical discussions, U.S. technology sales to China continue to provoke debate, with massive financial implications and questions regarding the future of technological supremacy.

Despite official warnings about the potential harm to national security and human rights abuses, successive U.S. administrations have allowed American firms to sell technological solutions to Chinese police and surveillance agencies. This has sparked an ongoing investigation by the Associated Press (AP), detailing how these transactions contribute significantly to China's ability to maintain control over its population.

The AP's report indicates that American technology, including cloud services from Microsoft and Amazon Web Services, enables prohibited Chinese entities to develop advanced surveillance capabilities, while lawmakers express frustration over the lack of legislative progress to close these loopholes.

While legislative attempts to restrict such sales have been made repeatedly over the decades, the profound influence of the tech industry, which has spent hundreds of millions lobbying against stricter regulations, remains a significant barrier to effective oversight.

Activists like Zhou Fengsuo, a former Tiananmen Square leader, criticize the U.S. for allowing corporate interests to overshadow ethical considerations in dealings with a government marked by authoritarian practices.

Narratives from members of Congress outline a systematic failure, indicative of the powerful interests at play, as numerous attempts to enforce stronger restrictions continue to stall.

This ongoing situation undermines U.S. efforts to promote democracy and human rights abroad while highlighting the need for a reevaluation of the ethical responsibilities of American tech companies in their international operations.