The more than $140 million U.S. penalty levied on California chip firm Cadence in July (see 2507290026) is the latest signal that companies should prepare for increasingly "aggressive" export control enforcement, especially for violators of technology controls against China, law firms said. One firm said it shows that the government expects companies to provide access to business information located in China -- even if that may violate China’s anti-foreign sanctions laws -- while another firm said it highlights the challenges companies face when determining whether a customer is a front company for a party on the Entity List.
The future effectiveness of U.S. export controls will depend on which technologies the government targets, how it collaborates with allies, and how well the U.S. is able to resource the Bureau of Industry and Security, said Navin Girishankar and Matt Borman of the Center for Strategic and International Studies.
Applied Materials, the largest American semiconductor equipment supplier, is expecting a drop in its China sales due to uncertainty around U.S. export controls and its high volume of pending license applications, executives said last week.
President Donald Trump signed a new executive order Aug. 13 aimed at deregulating the commercial space sector, which it said will help make American space launch companies more competitive. The order doesn't explicitly mention the loosening of export or trade restrictions, but it directs the Commerce and Transportation departments, along with other government offices, to create a "streamlined process for authorizing novel space activities (missions not clearly or straightforwardly governed by existing regulatory frameworks) with the goal of enabling American space competitiveness and superiority in new space-based industries."
Sen. Rick Scott, R-Fla., and House Select Committee on China Chairman John Moolenaar, R-Mich., called on the Bureau of Industry and Security Aug. 14 to return China’s Institute of Forensic Science to the BIS Entity List, citing the lab’s "continual and well-documented" human rights abuses.
The export licensing pauses and delays since the Trump administration took over in January are in conflict with the president’s stated goal of boosting American exports and opening new markets for U.S. companies, said Ron Kirk, a former U.S. trade representative.
Malaysia's July export license mandate for shipments of U.S.-origin advanced AI semiconductors could be a precursor to the U.S. carving out Malaysia from upcoming rules on advanced chip exports, a former Bureau of Industry and Security official said.
Rep. Joe Wilson, R-S.C., a senior member of the House Foreign Affairs Committee, urged the Bureau of Industry and Security on Aug. 11 to “move quickly” to remove its export controls on Syria to help the country recover from a 14-year civil war.
The Trump administration may consider expanding the revenue-sharing arrangements that it reached with Nvidia and AMD to other U.S. companies, the White House said this week.
Reps. Jason Crow, D-Colo., and Tom Kean, R-N.J., reintroduced a bill Aug. 8 that would authorize $100 million over four years to upgrade the Bureau of Industry and Security’s aging information technology systems.