Export Controls

Representative Bill Foster (D-IL) plans to introduce legislation requiring U.S. regulators to implement technical measures for tracking the location of advanced artificial intelligence (AI) chips, such as those manufactured by Nvidia, and to prevent their unauthorized use under export control laws.

U.S. Representatives Michael McCaul (R-Texas), and Bill Huizenga (R-Mich.), have introduced H.R. 3068, the Missile Technology Control Revision Act, aimed at reforming missile technology export rules and to enhance allied defense cooperation. The legislation seeks to amend the Arms Export Control Act of 1976 to expedite defense trade with U.S. allies by authorizing the President to exempt designated countries from certain export restrictions.

India is actively pursuing a bilateral trade agreement with the United States that includes provisions for relaxed export controls, aiming to facilitate greater access to advanced technologies. This initiative seeks to establish a framework similar to the AUKUS agreement, which allows for streamlined defense and technology collaboration among the U.S., U.K., and Australia.

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published a final rule in the Federal Register amending the Export Administration Regulations (EAR) to add 18 foreign entities to the Unverified List (UVL) and remove five previously listed parties.

Seven Republican senators have  sent a letter to Secretary of Commerce Howard Lutnick urging the Trump administration to withdraw the Biden-era Artificial Intelligence Diffusion Rule (AIDR). The senators argue that the rule, which imposes tiered restrictions on global access to U.S. AI technology, threatens American innovation and global competitiveness while failing to adequately counter China’s ambitions.

Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking Committee, has called on the Department of Commerce to immediately block exports of Nvidia’s H20 and other advanced AI chips to the People’s Republic of China (PRC), citing national security concerns and reports of undue influence in the administration’s export control decisions.

President Trump Wednesday signed a sweeping executive order aimed at overhauling the U.S. foreign defense sales system, seeking to reduce delays and regulatory barriers in the sale of military equipment to international partners. The directive—“Reforming Foreign Defense Sales to Improve Speed and Accountability”—initiates a broad set of reforms to the Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) processes, with the stated aim of improving delivery predictability, enhancing allied burden-sharing, and invigorating the domestic defense industrial base.

The U.S. Department of Justice’s Final Rule restricting the export of sensitive U.S. data to foreign entities took effect April 8, 2025. The rule targets data transactions involving individuals or entities linked to designated “countries of concern”—including China (with Hong Kong and Macau), Russia, Iran, North Korea, Cuba, and Venezuela.

The Bureau of Industry and Security (BIS) appears to be planning to keep at least some of the Technical Advisory Committees (TACs)  which have long defined the collaborative nature of  export enforcement and trade security.  The candor and efficacy of the new regime may be different though.

As the Trump administration adopts a unilateral approach to arms control and regional defense, customary avenues of discussion are being reassessed, including multilateral export controls.

A federal indictment unsealed March 27 charges a dual Pakistan-Canada citizen for running a procurement scheme to acquire U.S.-origin goods and technologies on behalf of Pakistani entities linked to the country’s nuclear, missile, and unmanned aerial vehicle (UAV) programs.

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced a final rule March 25th,  amending the Export Administration Regulations (EAR) by adding 80 foreign entities to the Entity List. Sales to listed entities are presumed denied and require an export license. The new restrictions, while not altering the legal framework of the Export Administration Regulations (EAR), appear to chart a trajectory toward broader control measures.

Rep. John Moolenaar (R-MI), Chairman of the House Select China Committee has written Commerce Secretary Howard Lutnik asking for a briefing on export controls on access to American universities' supercomputing resources.

Artificial intelligence (AI) has rapidly emerged as a transformative technology with significant implications for economic growth, scientific advancement, and national security. The U.S. Department of Commerce's Bureau of Industry and Security (BIS), along with its Emerging Technology Technical Advisory Committee (ETTAC), has been evaluating the implications of AI export controls. A March 10 ETTAC public meeting highlighted some of the challenges, strategies, and policy directions to manage the proliferation of AI-related technologies while defending the West’s competitive edge.

The Commerce Department has reportedly suspended processing applications for new export licenses with no communication to stakeholders. The pause has created confusion among users of the Simplified Network Application Process Redesign (SNAP-R) system,  managed by the Bureau of Industry and Security (BIS) within the U.S. Department of Commerce. Department leadership is in flux, pending the installation of political appointees.  

Rep Mark Green (R-TN) once again introduced his China Technology Transfer Control Act, having  failed to advance the initiative in the 116th, 117th and 118th Congress.   There were no co-sponsors. The bill controls exports of certain national interest technology and intellectual property to China, calling for the US Trade Representative to maintain a designated list of product components subject to enforcement.

On February 11, 2025, the Bureau of Industry and Security (BIS) issued a correcting amendment to the interim final rule published on January 16, 2025, titled “Implementation of Additional Due Diligence Measures for Advanced Computing Integrated Circuits; Amendments and Clarifications; and Extension of Comment Period.” This correction revises Export Control Classification Number (ECCN) 3A090 by amending its license requirements table. Specifically, the first row’s first column is changed from “RS applies to the entire entry, except 3A090.a” to “RS applies to 3A090.a.” This modification clarifies that regional stability controls apply solely to ECCN 3A090.a items.

Sens. Elizabeth Warren (D-Mass) and Josh Hawley (R-Mo) are calling on the Commerce Department to beef up export controls on China. In a letter to Commerce Secretary nominee Howard Lutnick, the two members of the Banking Committee said the Administration needs to strengthen export controls and close regulatory loopholes that are undercutting US technology leadership against challenges from China.

A European Commission report assessing patterns of Member-State exports of dual-use items shows that both authorisations and denials for the export of those most sensitive goods is on the rise as compared to 2021. The report includes, for the first time, extensive information on licensing data that will allow for a better understanding of how export controls are applied, and the risks identified relating to exports of sensitive items in the current geopolitical context.

House China hawks called for the National Security Advisor  to review the potential national security benefits of placing export controls on semiconductor chips critical to the AI infrastructure of People's Republic of China (PRC) company, DeepSeek. As part of the review, the lawmakers also asked to strengthen controls on shipments through third countries that pose a high risk of diversion to the PRC. The lawmakers further requested that  Mr. Waltz consider updating Federal Acquisition Regulations to prohibit the federal government from acquiring AI systems based on PRC models such as DeepSeek, except for appropriate intelligence and research purposes.

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