Sen. Jim Banks, R-Ind., announced May 14 that he has reintroduced a bill that would bar federally funded private companies, as well as U.S. government agencies and federally funded universities, from conducting research with Chinese military-linked entities on such sensitive technologies as AI, semiconductors, biotechnology, quantum computing and aerospace. The Preventing PLA Acquisition of U.S. Technology Act would also require the Defense Department to maintain a public list of restricted Chinese entities and technologies. Then-Rep. Banks and then-Sen. Marco Rubio, R-Fla., previously reintroduced the bill in the last Congress.
The U.K. should be wary of language in the recently announced trade framework with the U.S. (see 2505090006) that calls on Britain to comply with certain supply chain security requirements, which they said the U.S. could use to pressure the U.K. in its trading relationship with China, the U.K. Parliament heard from witnesses this week.
The Trump administration has a chance to create a “simpler, stronger” version of the soon-to-be-repealed AI diffusion rule (see 2505130018), including one that maintains strict export controls on adversaries while imposing few or no controls on close allies, researchers said this month.
House Select Committee on China ranking member Raja Krishnamoorthi, D-Ill., said May 13 that he’s concerned the potential transfer of advanced U.S. computing chips to Saudi Arabia and the United Arab Emirates could allow the sensitive technology to fall into China’s hands.
Export Compliance Daily is providing readers with the top stories from last week, in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
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.
Alan Estevez, undersecretary of the Bureau of Industry and Security during the Biden administration, has joined Covington & Burling as a senior adviser. Estevez is joining the firm's practice groups working on the Committee on Foreign Investment in the U.S. and international trade controls. Estevez served as undersecretary for more than three years, during which he oversaw the introduction and implementation of a range of new export control rules to restrict sales of advanced semiconductors and chip-related technology to China; new export restrictions against Russia; the continued expansion of the Entity List; and more.
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.
Sen. Tom Cotton, R-Ark., introduced a bill last week that would require export-controlled advanced computing chips to contain location verification mechanisms to prevent their diversion to “adversaries” such as China.
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.