Export Compliance Daily is a service of Warren Communications News.

Bipartisan Effort to Close Export Control 'Loophole' for Chips Now in Senate

Sens. Dave McCormick, R-Pa., and Ron Wyden, D-Ore., announced Dec. 21 that they have introduced a bill to close a “loophole” that has allowed China to use cloud service providers to access advanced U.S. chips remotely.

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Although the Bureau of Industry and Security can block the physical export of sensitive chips to China, it lacks the authority to address the use of cloud computing to circumvent the restrictions and access the chips, the senators said. “This legislation closes this existing security gap by extending export controls to include remote access scenarios,” McCormick said.

The Remote Access Security Act was referred to the Senate Banking Committee. A similar bill cleared the House Foreign Affairs Committee in April (see 2504090052).