Bill Would Require BIS to Notify Congress Before Approving China, Russia-Related Licenses
A Republican-backed bill in the Senate could require the Bureau of Industry and Security to adopt a license review policy of presumption of denial for controlled exports to “any end user” in China or Russia and to notify Congress before approving a license to either country. After notifying Congress, lawmakers would be able to block BIS from granting the license, which will help “create additional safeguards to ensure sensitive technology does not flow to our adversaries,” the bill’s introducers’ press release said.
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The Depriving Enemy Nations of Integral Authorizations and Licenses (DENIAL) Act of 2023, introduced by Sens. Marco Rubio of Florida and Roger Wicker of Mississippi, would “tighten up export controls so that we can keep American technology out of our enemies’ hands,” Rubio said, saying BIS’ “current rubber-stamp approval process is a threat to our national security.”
The press release cites statistics reported last year by The Wall Street Journal that show BIS approved 88% of technology-related license applications to China in 2021. Other lawmakers have pointed to similar statistics as evidence BIS is not doing enough to stop sensitive exports to China (see 2110210073 and 2303060013), but BIS and industry lawyers have said those numbers are misleading, in part because companies don’t usually apply for a license if they know they’re going to be rejected (see 2306150062). They say this inflates approval rates.
The bill also would extend Entity List license restrictions to companies owned 50% or more by the Entity Listed party. Commerce would be required to “ensure that the same requirements and restrictions that apply to an entity on the Entity List apply to an entity owned or controlled by an entity on the Entity List,” the bill says.
Wicker said China “routinely” steals American intellectual property, and “Russia has similarly proven itself untrustworthy.” The bill “would strengthen the security of our nation’s cutting-edge technology by tailoring our export controls to the unique challenges posed by these two nations.”