A new Bureau of Industry and Security rule that will place new, worldwide export controls on advanced computing chips and certain closed artificial intelligence model weights was widely panned by the American semiconductor and technology industry this week, even as U.S. officials said the restrictions are necessary to keep American companies ahead of their Chinese competitors.
China Export Control
Both the U.S. and China impose export controls on various items, technologies and services, which require exporters to apply for a license under certain circumstances. The following are recent stories about China-related export controls:
The leaders of the House Select Committee on China said Jan. 6 that they support the Bureau of Industry and Security’s plans to place new export controls on advanced AI-related chips and believe the agency's upcoming interim final rule should include several specific measures to help keep sensitive technology out of China’s hands.
Electronics distribution company Broad Tech System and its president and owner, Tao Jiang of Riverside, California, pleaded guilty Jan. 11 to participating in a conspiracy to illegally ship chemicals made or distributed by a Rhode Island-based company to a Chinese firm with ties to the Chinese military, the U.S. Attorney's Office for the District of Rhode Island announced. Jiang and Broad Tech admitted to violating the Export Control Act and conspiring to commit money laundering.
The Bureau of Industry and Security issued a 180-day temporary denial order Dec. 13 against three people and two companies for illegally sending controlled exports to Russia as part of a Moscow-led sanctions evasion scheme. Along with the denial order, DOJ indicted the three individuals, along with others, on charges related to the illegal exports, including money laundering, wire fraud, bank fraud and conspiring to defraud the U.S.
The administration should increase export controls and sanctions pressure on China, place more scrutiny on Chinese foreign direct investment and push for the modernization of multilateral export regimes, the House’s Republican-led China Task Force said in a Sept. 30 report. It urged the administration to act quickly, saying China and other U.S. “adversaries” are flouting international export control laws and undermining U.S. technology industries.