BIS Policy Review Likely to First Target China Exports, Law Firm Says
The Bureau of Industry and Security’s ongoing export control policy review is likely to result in an initial set of recommendations involving advanced technology exported to China, Akin Gump said last week.
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BIS earlier this month began placing holds on a range of new license applications as it reviews current export control licensing policies and procedures (see 2502130068, 2502190018 and 2501210023). Akin said this has “resulted in licensing delays, but it may result in different review policies, processes and determinations in the long term” after the review is completed.
“Our understanding is that the first recommendations issued as a result of this review will likely focus on technology exported to China, including advanced computing semiconductors,” the law firm said in a client alert.
Companies should expect "continuing changes" in the export control field, including the Trump administration bringing on more staff that have a "more stringent export control policy approach to China than the Biden administration," Akin said. It also said companies should look out for whether a "significant number of career personnel" leave the Commerce, State and Justice departments and other agencies, which could "introduce uncertainty as to whether/how certain informal interpretations and processes will be maintained."
Trump could also take a more “transactional” approach to export control decision-making instead of working together with other countries through multilateral efforts, the firm said. Other changes could modify export controls introduced during the Biden administration, such as restrictions around advanced artificial intelligence chips, or steps that could redefine "concepts like national security, AI and data security."
Akin said businesses need to "continue to monitor this very active space, ensuring flexible approaches to exports and related compliance programming to accommodate these recent, ongoing, and anticipated upcoming changes."