China criticized new guidance from the Bureau of Industry and Security this week that said using Huawei Ascend chips likely violates export controls (see 2505130018), saying the announcement is another example of U.S. “unilateral bullying.”
The Senate Commerce Committee voted 17-11 May 14 to approve former Energy Department official Paul Dabbar to be deputy commerce secretary, sending his nomination to the full Senate for its consideration. Asked in written questions whether he would ensure the Bureau of Industry and Security has the resources necessary to do its job, Dabbar said he would ensure the Commerce Department, including BIS, “completes its mission.” He also said he would work to "tighten export controls on critical and emerging technologies."
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The Bureau of Industry and Security officially announced this week that it plans to rescind the Biden administration’s AI diffusion export control rule and issue a “replacement rule in the future.” The agency also issued new guidance about how using Huawei Ascend chips and other Chinese chips likely violates U.S. export controls, published recommendations for companies to protect their supply chains against “diversion tactics,” and outlined the types of activities involving AI chips and AI models that may trigger a license requirement.
Nature’s Sunshine Products, a dietary supplement manufacturer headquartered in Utah, may have violated U.S. sanctions and export controls, it disclosed this month.
The Bureau of Industry and Security officially announced May 13 that it plans to rescind the Biden administration’s AI diffusion export control rule and issue a “replacement rule in the future.” BIS enforcement officials won't be enforcing the Biden-era rule, the agency said, which was scheduled to take effect May 15. The agency said it plans to publish a formal rescission notice in the Federal Register.
Sen. Tom Cotton, R-Ark., introduced a bill last week that would require export-controlled advanced computing chips to contain location verification mechanisms to prevent their diversion to “adversaries” such as China.
The Trump administration’s request for an increased budget allocation for the Bureau of Industry and Security (see 2505020030) signals that export enforcement will be one of the administration's top priorities, said Gregory Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies.
The U.S. needs to better enforce its existing export controls on advanced AI chips and chip equipment while bolstering its ability to screen Chinese investments that may be looking to evade those restrictions, several witnesses told Congress this week. But another witness said the current U.S. chip controls have so far failed and called on the government to rework its export control strategy.
David Sacks, the president's AI policy adviser, said the Biden-era AI diffusion export control rule was an “overreach” of U.S. export control authority and alienated American allies. The Bureau of Industry and Security’s plan to rescind the rule (see 2505070039 and 2505080026) was an “excellent decision,” he said last week.