The Bureau of Industry and Security officially announced this week that it plans to rescind the Biden administration’s AI diffusion export control rule and issue a “replacement rule in the future.” The agency also issued new guidance about how using Huawei Ascend chips and other Chinese chips likely violates U.S. export controls, published recommendations for companies to protect their supply chains against “diversion tactics,” and outlined the types of activities involving AI chips and AI models that may trigger a license requirement.
The Bureau of Industry and Security officially announced May 13 that it plans to rescind the Biden administration’s AI diffusion export control rule and issue a “replacement rule in the future.” BIS enforcement officials won't be enforcing the Biden-era rule, the agency said, which was scheduled to take effect May 15. The agency said it plans to publish a formal rescission notice in the Federal Register.
Beijing has launched a "special operation" to crack down on illegal exports of critical minerals, such as gallium, germanium, antimony, tungsten and other rare earths, according to an unofficial translation of a May 9 Ministry of Commerce notice. The ministry said China's Office of the National Export Control Coordination Mechanism gathered agencies for a meeting to discuss how they can better stop export smuggling, specifically pointing to "overseas entities" that "have colluded with domestic illegal personnel" to evade Chinese export controls.
The U.S. needs to better enforce its existing export controls on advanced AI chips and chip equipment while bolstering its ability to screen Chinese investments that may be looking to evade those restrictions, several witnesses told Congress this week. But another witness said the current U.S. chip controls have so far failed and called on the government to rework its export control strategy.
David Sacks, the president's AI policy adviser, said the Biden-era AI diffusion export control rule was an “overreach” of U.S. export control authority and alienated American allies. The Bureau of Industry and Security’s plan to rescind the rule (see 2505070039 and 2505080026) was an “excellent decision,” he said last week.
Sens. Ted Cruz, R-Texas, and Pete Ricketts, R-Neb., welcomed the Trump administration’s decision to rescind and replace the Biden administration’s AI diffusion rule (see 2505070039), while House Select Committee on China Chairman John Moolenaar, R-Mich., offered a more guarded response.
The Bureau of Industry and Security is preparing to publish a notice that will officially rescind the AI diffusion export control rule released by the Biden administration in January, according to the Office of Information and Regulatory Affairs. BIS sent the notice for interagency review on May 7 (see 2505070039).
The Bureau of Industry and Security is planning to replace the Biden-era AI diffusion rule that is scheduled to take effect May 15, an agency spokesperson said May 7.
The Census Bureau this week updated two license type codes in the Automated Export System to reflect which Export Control Classification Numbers can be used with those codes, which need to be reported for certain chip-related exports.
During a closed-door meeting with U.S. lawmakers May 1, Nvidia Chief Executive Officer Jensen Huang reiterated his opposition to the Bureau of Industry and Security’s recent AI diffusion rule, the company said.