U.S. export controls on quantum computing and communication technologies would slow scientific progress and fail to target the most “defense-relevant applications,” the nonprofit Rand Corp. said in a recent report. The think tank said the U.S. should “not impose export controls on quantum computers or quantum communications systems at this time” or risk stifling American quantum innovation.
Exports to China
Although the U.S should take steps to punish Chinese cyber hackers through sanctions and export controls, it shouldn't expect those tools to slow China’s cyber hacking capabilities, experts told the U.S.-China Economic and Security Review Commission. They said the U.S. should use sanctions in conjunction with other defensive tools to make it harder for China to carry out hacking.
The Commerce Department should add more Chinese companies to the Entity List, better restrict China’s government organizations and target the country with unilateral controls when appropriate, China Tech Threat said this week. The organization, which is run by Strand Consult and advocates for stronger export controls on China, said Commerce should add China semiconductor companies Yangtze Memory Technologies and Changxin Memory Technologies to the Entity List and tailor export controls to better target Chinese “pseudo-government organizations.” Commerce should also “prioritize” unilateral controls on American semiconductor manufacturing equipment by employing a “control-now-cooperate-later” approach, China Tech Threat said.
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Although the Commerce and State departments have been able to conduct some export end-use checks during the COVID-19 pandemic, officials said both agencies continue to face challenges scheduling on-site inspections.
China objected to the U.S. decision to add 33 Chinese entities to its Unverified List, it said in a Feb. 7 news release. The Bureau of Industry and Security made the additions, which included universities and companies operating in China's technology and electronics sectors, due to its inability to verify the reliability of the entities through end-use checks (see 2202070012). According to an unofficial translation, China's Ministry of Commerce said that the U.S. should immediately correct its perceived wrongdoing and return to mutual beneficial cooperation. MofCom characterized this action, along with the U.S. past export control moves, as tools of "political suppression and economic bullying." A BIS spokesperson dubbed its end-use checks a "core principle" of the agency's export control system.
WuXi Biologics, one of China’s largest biotechnology companies, said it complies with all U.S. export control regulations despite the Commerce Department’s decision to add two of its subsidiaries to the Unverified List this week (see 2202070012). The company said it has been approved to import U.S. export-controlled “hardware controllers for bioreactors and certain hollow fiber filters” for 10 years. “We do not re-export or resell these items to any other entity,” WuXi said Feb. 8 in a statement.
The European Commission announced plans this week to increase investments and incentives for its semiconductor industry and establish a more reliable chip supply chain to reduce dependence on foreign suppliers. The plans also could lead to more export control measures over sensitive chip products in response to domestic shortages or unfair foreign trade policies.
The Bureau of Industry and Security added 33 Chinese entities to its Unverified List this week, including universities and companies operating in China's technology and electronics sectors. BIS hasn’t been able to verify the “legitimacy and reliability” of the entities through end-use checks, including their ability to responsibly receive controlled U.S. exports, the agency said in a notice. The UVL additions take effect Feb. 8
The House voted 222-210 last week to pass its China competition bill, which includes a variety of provisions that could expand U.S. export controls, sanctions and investment screening authorities. Although the America Competes Act faced objections from Republicans who argued it wasn’t tough enough on China and didn’t include strong enough export control measures (see 2202020039), several provisions could lead to more China sanctions and further restrict exports of critical American technologies.