A bill to mandate location-tracking mechanisms for exports of advanced chips was panned this week by technology policy experts who said the requirement would be tricky to implement and could push foreign customers to stop trusting American-made semiconductors. They also said Congress should be more focused on boosting the Bureau of Industry and Security budget to help the agency step up enforcement.
Congress should ask the Trump administration several key questions as part of its oversight of the Treasury Department’s new program restricting outbound investment, two investment security experts told the House Financial Services national security subcommittee July 16.
India's Directorate General of Foreign Trade this week issued new guidelines for how companies should develop and operate export control compliance programs for dual-use goods. The guidance states that companies must have export compliance programs in order to be eligible for certain export licenses, including India's "Global Authorisation for Inter-Company Transfers" scheme, which issues licenses for exports to company affiliates in certain third countries, and the country's "Open General Export License" scheme, which issues one-time export licenses for a specific time period.
Nearly half of respondents to a US-China Business Council survey reported losing sales to international competitors due to U.S. export controls, which is almost 20% more than last year, the council said in summary of those survey results this week. It said 56% of companies reported losing sales to Chinese competitors and that, in total, "nearly 60% of companies affected by export controls saw declines in market share last year."
The Trump administration’s decision to approve exports of advanced Nvidia chips to China could backfire on the U.S. the next time it tries to convince allies to restrict their advanced technology shipments to China, Divyansh Kaushik of Beacon Global Strategies said.
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The Trump administration will allow semiconductor firm Nvidia to sell its previously restricted advanced H20 chips to China as part of an agreement Washington and Beijing reached during trade talks in recent months, Treasury Secretary Scott Bessent said.
The Bureau of Industry and Security has completed an interagency review of its rule that will formally rescind the Biden-era AI diffusion rule (see 2505070039). The agency sent the final rule for interagency review May 7 (see 2505080026), and it was completed July 10.
The Bureau of Industry and Security’s latest export control enforcement action against a semiconductor firm shows the agency may be preparing to target companies that flout its high probability standard, a trade lawyer and industry consultant said.
All shipments of U.S.-origin advanced AI semiconductors will require an export license from the Malaysian government when moving through Malaysia, the country announced July 14, a move that further aligns Malaysia with U.S. efforts to prevent the diversion of sensitive chips to China.