The Trump administration should reverse a planned $20 million funding cut for the Bureau of Industry and Security, which will hamper the agency’s ability to enforce export controls and weaken American technology competitiveness, a tech policy non-profit said this week.
The Bureau of Industry and Security reinstated a pause on export license applications last week, four people with knowledge of the situation said, days after officials announced at the agency’s March update conference that licensing was expected to soon return to normal.
The Bureau of Industry and Security on March 31 renewed the temporary denial order for Russian air cargo carrier Aviastar for one year after finding it continues to violate U.S. export controls. The agency said the airline has continued to illegally operate aircraft subject to the Export Administration Regulations, including for flights within Russia and between Russia and India.
The Beijing Academy of Artificial Intelligence criticized the Bureau of Industry and Security's decision last week to add the research organization to the Entity List and urged BIS to remove it (see 2503250075). "Artificial intelligence is a shared resource for humanity, akin to electricity and other transformative technological advancements," the academy said, according to a report from state-run news outlet China Daily. "The US decision contradicts the spirit of scientific innovation and global cooperation, severely undermining openness in AI research and development.” The academy was added for allegedly trying to buy export-controlled U.S. items to develop large AI models and advanced semiconductors for China’s military.
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Four Democratic lawmakers said this week that the Bureau of Industry and Security’s plans to pull back from traditional export control dialogues with allies, including the U.S.-EU Trade and Technology Council, will reduce international collaboration and make it harder to keep sensitive technology out of the hands of China.
The Bureau of Industry and Security’s recent semiconductor-related export controls could place large burdens not only on exporters but also on BIS enforcement, which will face a host of challenges trying to track whether certain countries have filled their allocated chip quotas, researchers said.
The Bureau of Industry and Security is ending its work in the U.S.-EU Trade and Technology Council as part of a broader effort to pull back from traditional export control dialogues with allies, Jeffrey Kessler, the head of BIS, said in a closed-door meeting with agency officials last week. Kessler also said the agency plans to significantly increase export enforcement against China, warned about possible staffing cuts, urged officials to tamp down on conversations with industry, and said it’s unclear whether existing export controls against Russia will be maintained.
Six Senate Banking Committee Democrats, including ranking member Elizabeth Warren, D-Mass., asked the Trump administration March 26 to explain how it plans to implement the $20 million funding cut it recently imposed on the Bureau of Industry and Security, including whether it intends to shrink the agency’s workforce.
Longtime Bureau of Industry and Security officials Hillary Hess, Sheila Quarterman and Carlos Monroy soon will retire from the agency, multiple people familiar with the matter said.