The White House has moved its scrutiny of Chinese artificial intelligence companies from public criticism to a formal federal investigation, according to a report by @theinformation.

The inquiry involves the Commerce Department’s Bureau of Industry and Security examining companies including Moonshot for possible illegal access to advanced U.S. AI technology. The action is part of a wider U.S. effort to address concerns about industrial-scale AI technology theft and possible export-control violations by Chinese firms.

The Bureau of Industry and Security oversees U.S. export controls, including restrictions involving sensitive technologies such as advanced semiconductors and related computing equipment used in AI development. One potential consequence of such investigations can be the addition of companies to the Entity List, a Commerce Department tool that can limit an organization’s access to U.S. technology by imposing licensing requirements on suppliers.

The formal investigation follows earlier U.S. government actions, including a joint congressional probe into national security risks linked to AI models developed in China. It also underscores how AI has become a focus of U.S. trade and national security policy, where enforcement can turn on whether restricted technology, services, or equipment reached companies subject to U.S. controls.

The White House’s move indicates a shift toward heightened scrutiny of Chinese AI companies beyond public statements. The Commerce Department is specifically reviewing whether firms such as Moonshot may have violated export controls.

The development also comes as attention remains on whether Trump will order a federal review of AI models by the end of July. With four days remaining before July 31, observers are watching for official announcements or evidence that could affect the current 5.1% probability of such a review occurring by that date.