Sen. Tim Scott says U.S. must tighten chip export controls to keep AI edge, warns China is primary competitor

Sen. Tim Scott said on a Walker webcast that the first regulatory question about artificial intelligence is "who's our competition," and that ‘‘China’s our primary competitor’’ when policymakers set export controls and other rules governing advanced chips and associated technology. Scott, chair of the Senate Banking Committee, said those controls should be part of a broader strategy to preserve U.S. economic leadership.

"The regulatory environment that is foremost on my mind particularly as the chairman of the banking committee is setting rules of the road on what they can have and what they can't have," Scott said, describing export controls on chips as a "big issue." He said his approach is to combine objective research with open discussions that include industry leaders with divergent views, calling it a way to find "real answers for the average person."

Scott said he convenes industry CEOs directly to learn — "I call in Jensen from Nvidia and talk one-on-one with the CEO of Nvidia" — and then brings competing perspectives to committee hearings so lawmakers can hear tension in the public forum. He emphasized coordinating with the White House: "which is consistent with what the White House is doing as well," he said, describing export controls as a near-term priority.

On the potential labor effects of AI, Scott urged policies to "calm people down" while preparing workers for change. He said some large employers expect employees will become more productive rather than disappear and recommended encouraging entrepreneurship and strengthening critical-thinking skills in higher education so graduates can take advantage of AI tools.

"What I'm going to do as a policy maker, I'm gonna focus not on my election cycle, but America at 2034, 2040," Scott said, adding that policymakers should plan transitional support "for those folks who could be displaced in this workforce because of artificial intelligence." He described a mix of near-term export-control steps and longer-term workforce preparation as the committee's dual priorities.

The host raised economic comparisons with Europe and Asia during the conversation; Scott argued that heavy regulation can blunt innovation, urging the U.S. to foster entrepreneurship while crafting targeted controls to protect national competitiveness.

What happens next: Scott said he uses his committee chairmanship to convene industry witnesses and experts, a step that typically precedes hearings and potential legislative proposals; he did not specify particular bills or timelines on the webcast.