Senators Ask Commerce to Explain Position on SMIC Export Controls
Two senators this week asked the Commerce Department to say whether it opposes stronger export controls against SMIC, China’s top chipmaker, as has been reported in the media, and to explain why.
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Commerce has reportedly disagreed with the Defense Department on stronger export restrictions on shipments to SMIC, because the agency said increased controls could hurt U.S. businesses and further exacerbate the global chip shortage (see 2112100034). Sens. Bob Hagerty, R-Tenn., and Tom Cotton, R-Ark., were “disheartened” to learn of Commerce’s opposition, the lawmakers said in a Jan. 31 letter to Commerce Secretary Gina Raimondo. They said the increased restrictions would “close an important loophole” and prevent the Chinese government and military “from using U.S. technology to advance its military modernization programs.”
Hagerty and Cotton asked Commerce to officially say whether it supports the application of the foreign direct product rule against SMIC, which could restrict it from sourcing certain foreign-produced items that incorporate or are built with certain U.S. technology. They also asked Commerce to “characterize” its understanding of SMIC’s relationship with the Chinese government and military and its understanding of China’s Military-Civil Fusion strategy.
Raimondo, in response to similar questions posed by Hagerty during a Feb. 1 Senate Appropriations Committee hearing, said the agency is committed to using the Entity List to protect American technologies. "I share your deep, deep concern with doing everything we can to deny China our technologies," Raimondo said. "I will look at your letter and get back to you." Republican lawmakers have previously asked the agency to tighten export controls against SMIC (see 2103190005).