The Senate Appropriations Committee endorsed a proposal July 10 to urge the Bureau of Industry and Security to create a program to provide financial rewards to those who report illegal exports of advanced semiconductors and AI-enabling chips to “foreign adversaries.”
Microsoft President Brad Smith this week warned the U.S. against introducing new export controls that could prevent American companies from becoming the world’s leading exporters of AI services, suggesting the Trump administration should instead look into expanding or replicating the AI deal it announced in May with the United Arab Emirates.
A bipartisan, bicameral group of lawmakers issued a press release late July 7 calling on Congress to pass a bill that would require export-controlled advanced computing chips to contain location verification mechanisms.
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Companies should expect the Bureau of Industry and Security to continue a steady pace of penalties against export violators, particularly for cases involving semiconductors and other advanced technologies, said Gregory Dunlap, the former special agent in charge of the agency’s Los Angeles field office. And if Congress grants the agency’s request for more funding, Dunlap said, BIS could soon have the resources to more quickly carry out investigations and probe a greater number of exporters.
The Bureau of Industry and Security last week rescinded China-related export restrictions on multiple electronic design automation companies and a gas and oil pipeline company, a move that came less than a month after Washington and Beijing reached an agreement to rein in their respective export curbs.
The Bureau of Industry and Security fined a California semiconductor developer and supplier $4.25 million for violating U.S. export controls against Huawei, saying it illegally forwarded more than 1,500 power controllers, smart power stages and related accessories to the Chinese company without a license.
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House Select Committee on China Chairman Rep. John Moolenaar, R-Mich., urged the Trump administration June 27 to impose several export-related restrictions as it implements new AI deals with the United Arab Emirates and other countries.
U.S. and Chinese officials said the two countries are still on pace for Beijing to ease its restrictions over rare earths and for Washington to lift its countermeasures, including export controls.