The Bureau of Industry and Security is still discussing how it wants to craft its replacement to the Biden-era AI diffusion rule, an agency official said, as well as preparing to finalize recent rules that reduced licensing requirements for exports of certain space-related items and proposed to simplify the License Exception Strategic Trade Authorization. The official also said the Trump administration is considering tweaks to export licensing, acknowledging that applications are taking longer than usual.
The Bureau of Industry and Security is drafting a new regulation that could create a 50%-ownership threshold rule for parties on the Entity List, a BIS official said this week.
Trade enforcement under President Donald Trump could "look a little different" than how the federal government has previously acted because of how the DOJ seems now to want to focus on holding individuals accountable, as opposed to corporations, according to a trade lawyer speaking during a June 6 webinar hosted by the Massachusetts Export Center.
A law firm said May 23 that the U.S. was failing to provide documents requested under the Freedom of Information Act partly because it was relying on a “novelly broad” interpretation of the Export Control Reform Act of 2018 (Husch Blackwell v. Department of Commerce, D.D.C. # 1:24-02733).
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House Select Committee on China Chairman John Moolenaar, R-Mich., said June 3 that he hopes the Trump administration will release a new AI diffusion export control rule “soon" to replace the one it recently rescinded.
Although adopting a 50% rule for the Entity List could allow U.S. export controls to capture more bad actors, it could also cause unintended business consequences and may make it more challenging for the Bureau of Industry and Security to add companies to the list, said Matthew Axelrod, the agency’s former export enforcement chief.
The Democratic leaders of two key House committees said this week they’re “deeply concerned” about the Bureau of Industry and Security potentially pivoting away from traditional export control dialogues with allies and asked BIS to respond to oversight questions before the end of next week.
The Consolidated Screening List -- the comprehensive list of entities and people subject to U.S. export controls and other trade restrictions -- has recently been experiencing issues and isn't up to date, the Commerce Department said in a notice on its website last week. While the list's search engine still works, "it has not been updating consistently from the source files since April 21, 2025."
House Select Committee on China Chairman John Moolenaar, R-Mich., and Sen. Marsha Blackburn, R-Tenn., urged the Trump administration May 19 to consider adding Chinese electric vehicle charging company Autel Energy to the Commerce Department’s Entity List and the Defense Department’s Section 1260H list of Chinese military companies.