"The Manufacturing, Investment and Controls Review for Computer Hardware, Intellectual Property and Supply (MICROCHIPS) Act (S. 2316) would develop a national strategy to assess and prevent risks to critical US technologies", the release said.
Crapo and Warner said China has benefited from an unfair and unsafe advantage in its technological race against the United States.
By exporting 5G technology to the United States, Chinese telecommunications companies could potentially harm and expose sensitive information, the senators added.
Crapo and Warner also said that despite the United States' increased cybersecurity investments, the country remains vulnerable to advanced cyberattacks from foreign adversaries like China and Russia.
The MICROCHIPS Act would address China's practice of four non-kinetic areas of warfare: Supply chain exploitation; cyber-physical attacks, cyberattacks; and unlawfully accessing sensitive information, the senators said.
The legislation would require a congressional summary on supply chain security; a plan to increase supply chain intelligence within six months; the creation of a National Supply Chain Security Center; and federal funds to enhance security measures.
In May, the US government blacklisted Chinese tech giant Huawei over its suspected connections with Chinese intelligence.
The sanctions make it illegal for US firms to strike deals with Huawei without first procuring a special license. The United States has also been pushing other countries to refrain from using Huawei’s equipment while adopting 5G network technology.
On 29 June, US President Donald Trump eased the sanctions placed on Huawei by allowing US companies to sell components and spare parts to the still-blacklisted company.