Senior BIS Official Calls for Continued Work With Allies Ahead of Trump Transition
The U.S. must continue to coordinate with allies on export controls, especially around Russia-related trade restrictions and curbs on advanced semiconductors and semiconductor tools destined to China, the Bureau of Industry and Security's Thea Kendler said during her final international outreach event as a Biden administration official.
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Kendler, the BIS assistant secretary for export administration, highlighted U.S. work with trading partners over the last four years to restrict exports of sensitive microelectronics to Russia, lower certain export barriers with Australia and the U.K. under the AUKUS partnership (see 2404180035) and carve out close allies from controls on new advanced technologies (see 2409050028). The administration also has tried to convince Japan and the Netherlands, two major chip tool producing nations, to increase export controls on China.
“Through all of these measures, whether against the [People’s Republic of China] or Russia, or any of the other myriad export control actions we’ve taken in this administration, one thing is crystal clear: we must work with our allies,” Kendler said, according to a copy of her prepared remarks to be delivered at a Dec. 3 industry export control forum in London. She said BIS efforts “set the next administration up to conduct sophisticated assessment of technology-based national security threats, and to take on strategic and targeted actions to protect our national security, together with our allies.”
It’s unclear whether the U.S. will continue under the incoming Trump administration to work with allies on the range of export control efforts that began under Biden, especially because Trump largely focused on trade grievances as opposed to collaboration with allies during his first term. Some observers believe Trump will continue U.S. efforts to push the Japanese and the Dutch to increase export restrictions on China and may have more success than Biden, partly because Trump will have more credibility if he threatens to impose unilateral chip controls that could hurt Dutch and Japanese firms (see 2411140037).
Kendler said no administration “has been tougher” on China, “and that legacy will live on.” She said BIS controls have helped to limit Chinese chipmaking capabilities “at the 7 [nanometer] node, which is itself more than 5 years behind the current leading edge.”
“As this technology gap continues to grow, the PRC will struggle increasingly to develop AI supercomputers capable of pushing the frontiers of weapons modeling, surveillance, and military modernization,” she said.
Speaking specifically about Russia, Kendler said BIS knows “there are situations in which unilateral controls are necessary, especially when our values are at stake.” But those controls “not only do not accomplish our national security goals, they also create an unlevel business environment for companies operating in -- or in our case, for companies that produce technology in -- the country that imposes the controls.”
She said U.S. work with allies has helped to restrict “thousands of items” to Russia, including nations that are part of the so-called Global Export Control Coalition. Those efforts have indirectly helped other countries also step up restrictions on Russia, Kendler said, including Armenia, which she said adopted a law last year that specifically requires export licenses for shipments to Russia of commercial-grade legacy chips and other items on the Common High Priority List.
Kendler said customs data shows that the “average of CHPL exports from Armenia to Russia has fallen around 70 percent” compared with the same period in 2023, “and the latest data reported shows the lowest monthly total in exports to Russia since May 2021.”
Kendler also touched on BIS efforts to add to its validated end-user program, such as an October change that includes a new export authorization for data centers, including centers in China. That could allow certain preapproved data facilities to more quickly obtain advanced semiconductors and other U.S.-controlled items with artificial intelligence uses, instead of having to apply for a specific BIS license (see 2409300029)
“When companies demonstrate that they have high standards for physical security and cybersecurity measures, they unlock predictable and reliable flows of controlled data center technology,” Kendler said. She added that sometimes governments can’t move fast enough to keep up with the pace of technology, but by “creating trusted technology ecosystems through these examples, we create an environment with our allies and partners in which we have confidence that they will ensure our dual-use technologies are used in an aligned manner.”