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ICYMI: Industry Leaders Warn of Security Risks From PRC Technologies in U.S. Markets

March 22, 2026

WASHINGTON, D.C. –– Last week, the Subcommittee on Cybersecurity and Infrastructure Protection convened a hearing to assess the increasing national security threats and economic risks posed by artificial intelligence (AI), robotics, and autonomous sensing technologies developed by companies linked to the People’s Republic of China (PRC) as they expand into global markets.

Witness testimony was provided by Max Fenkell, Global Head of Policy and Government Relations of Scale AI; Matthew Malchano, Vice President of Software of Boston Dynamics; Michael Robbins, President and CEO of the Association for Uncrewed Vehicle Systems International; and Rush Doshi, C.V. Starr Senior Fellow for Asia Studies and Director of the China Strategy Initiative, Council on Foreign Relations. 

Witnesses discussed how companies like DeepSeek and Unitree Robotics are rapidly developing and deploying advanced technologies and offered recommendations on how to mitigate risks to U.S. critical infrastructure, government networks, and sensitive industries. Witnesses emphasized the need to bolster U.S. competitiveness, secure supply chains, and invest into American technology and manufacturers.

In his opening statement, Rep. Vince Fong (R-CA) discussed the national security risks posed by technology developed by the PRC:

“The People’s Republic of China is moving aggressively to dominate the technologies that are reshaping the global economy and security, including artificial intelligence, robotics, and autonomous systems. This competition is already present on American campuses, in American police departments, on American smartphones, and increasingly within systems connected to our critical infrastructure.”

“Within weeks of its release, American AI companies raised serious concerns that DeepSeek used their proprietary models, without consent, to train its own through a process known as model distillation. Rather than investing years of effort and billions of dollars in frontier research, DeepSeek appeared to have fed outputs from leading American AI systems into its training pipeline, illicitly reverse-engineering the capabilities those companies had developed through legitimate investment.”

“American companies are innovating and competing seriously in robotics and artificial intelligence, and this Subcommittee strongly supports their work. The answer is not to retreat from these technologies. It is to invest in trusted American alternatives, strengthen cybersecurity practices, and prevent federal funds from supporting platforms that put American data and infrastructure at risk and give China an economic and military advantage.”

Rep. Fong asked about how the Chinese-backed AI company DeepSeek trained one of its models to censor dissenting narratives and promote PRC-friendly propaganda

“Researchers and journalists have found that DeepSeek censors its own answers in real time, deleting responses, related topics like Tiananmen Square, Taiwan, or criticism of the Chinese Communist Party. In some cases, the model initially generates accurate information but then erases it and replaces it with a different answer. What risks arise when an AI system that may reflect the information controls and propaganda narratives of an authoritarian government become widely used around the world?”

Mr. Fenkell testified: 

“There are a number of different risks associated with in what we’ve seen… In order to release a model in China, you have to pass a test essentially adhering to the laws that you referenced… It’s really important, though, that we’re putting models out to the world that we believe have democratic values and ideals and uphold American values. And that’s what, again, why it’s important that we not only match, but exceed China’s intensity and diffusing our tech globally.” 

Rep. Fong asked about the threats posed by malicious actors having access to robots in sensitive environments:

“Unlike traditional Internet of Things devices, robots are not just collecting data. They are fiscal machines capable of movement and interaction with the environment. If a malicious actor gained control of a connected robot operating in a sensitive environment, such as a research laboratory, industrial facility, or transportation hub, what kinds of physical or operational risks could arise?”

Mr. Malchano testified: 

 “Those risks are very similar to the kinds of risks that would happen if you allowed someone into your environment that is a hostile person… That robot could go around, manipulate things, look at things… If you had an assembly line, that robot could destroy the assembly line or otherwise, take malicious photos of materials going through. So, in many ways, a robot represents a kind of risk that is beyond the passive risks of IOT devices, if compromised.” 

Mr. Robbins testified about what lessons Congress can learn from other Chinese technologies that dominate the global market, like DJI drones, as U.S. policymakers look towards promoting American AI systems, robotics platforms, and autonomous technologies:

“The number one lesson is don’t wait until the problem is upon us and we get behind. Take action now to level the playing field for U.S. robotics and AI companies and autonomy companies… Now, instead of having to fight from behind like American drone companies are doing today, there are policy actions. Congress can take. [There are] actions the executive branch can take now with existing authorities to level the playing field.”

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