The Commerce Department’s fall 2024 regulatory agenda for the Bureau of Industry and Security features a host of new rules that could soon update U.S. export controls, including restrictions on aircraft engines, biological equipment and reporting requirements for certain weapons sales, AI chips.
The outbound investment legislation that lawmakers agreed Dec. 17 to include in a newly unveiled continuing resolution (CR) (see 2412170063) would expand upon the Biden administration’s August 2023 executive order (see 2308090066) by covering more artificial intelligence models and by adding hypersonic and related aerospace technologies.
China appears to be preparing to use its own set of extraterritorial export controls against the U.S. in response to the Biden administration’s latest chip restrictions and Entity List additions, an official with the U.S.-China Business Council said.
The Bureau of Industry and Security is working on a set of FAQs for its recently released China-related semiconductor export control rules (see 2412020016), which should clear up confusion about when certain new foreign direct product rule restrictions take effect and how they apply, a BIS official said this week.
The Bureau of Industry and Security is adding eight companies to the Entity List that it said are “enabling human rights violations,” including by supplying sensitive technology or military items to the Chinese, Russian and Myanmar militaries. The additions, outlined in a final rule released Dec. 10 and effective Dec. 11, target technology companies and supplier firms based in each of those three countries.
Companies should expect the U.S. government to continue to prioritize enforcement of export controls in the coming months, including by issuing new penalties for export violations, said Matthew Axelrod, the Bureau of Industry and Security’s top export enforcement official. He also revealed that BIS is using a new tool to better screen foreign parties listed on license applications, and he said a recent shift in how the agency uses metrics has allowed it to devote more attention to cases involving the most sensitive technology.
The newly released FY 2025 National Defense Authorization Act (NDAA) calls for the executive branch to take several actions related to export controls, including a review of China’s efforts to evade U.S. restrictions, and an assessment of Japan’s possible participation in the Australia-U.K.-U.S. (AUKUS) security partnership.
The Bureau of Industry and Security on Dec. 11 will add eight companies to the Entity List for “enabling human rights violations,” including by supplying sensitive technology or military items to foreign governments that are subject to strict license requirements. The entities are located in Myanmar, China and Russia, the agency said in a final rule released Dec. 10. They will be subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial.
The U.S. should continue working with allies to restrict sales of advanced semiconductors and semiconductor tools to China after the Biden administration leaves next month, Commerce Secretary Gina Raimondo said. But she also said she hopes the Trump administration prioritizes tools other than export controls and tariffs to counter China, and she warned against a potential decoupling of the two economies.
House Select Committee on China Chairman John Moolenaar, R-Mich., urged the Bureau of Industry and Security Dec. 4 to close several “loopholes” in its new export controls on advanced computing chips and chipmaking equipment (see 2412020016).