Open-source intelligence software firm WireScreen said it has identified more than 20,000 Chinese entities that are subject to U.S. export restrictions as a result of the Bureau of Industry and Security's 50% rule, released last month (see 2510030041 and 2509290017).
China’s recently issued rare earth export controls were likely a response to the Commerce Department’s 50% rule for the Entity List and highlighted the ongoing communication issues between the two sides, said David Sacks, the White House’s AI policy adviser.
A new draft report issued this month from the nonprofit Law Reform Institute examines how frontier AI systems may soon be able to create instructions, designs and code subject to U.S. export controls and whether the U.S. will need to restrict this through new controls on AI developers.
The State Department’s Directorate of Defense Trade Controls has resumed “limited operations” amid the federal government shutdown, according to the agency’s website. “Services currently available include registration renewals and licensing,” it said. “Certain support functions may remain unavailable during the lapse in government appropriations.”
The Commerce Department is investigating Singapore-based data center company Megaspeed for potentially helping Chinese companies evade U.S. export controls on sensitive Nvidia chips, The New York Times reported last week. Megaspeed is reportedly poised to buy $2 billion of Nvidia AI technology over the next year, and the Commerce probe is looking into whether it has been indirectly funneling some of those chips to China, including to data centers in Malaysia and Indonesia that appear to be remotely serving Chinese customers. "U.S. officials have also been scrutinizing whether Megaspeed diverted some of those chips on to China, in violation of U.S. law," the report said.
The Bureau of Industry and Security's recently issued FAQs for its new Affiliates Rule (see 2509290017) are “helpful in clarifying the scope” of the rule, but they also leave some “burning” questions unanswered, ArentFox said in a client alert.
The State Department’s Directorate of Defense Trade Controls has restored limited access to its Defense Export Control and Compliance System (DECCS) amid the government shutdown. While DECCS users still cannot make new submissions or updates, they can view their completed submissions in read-only mode.
A new message on the Bureau of Industry and Security's website alerts exporters that the agency is prioritizing reviews of urgent license applications during the government shutdown, and it provides instructions on how to request expedited reviews.
A Bureau of Industry and Security interim final rule that introduced a 50% ownership threshold rule for the Entity List and Military End-User List was released and effective Sept. 29 (see 2509290017).
The 60-day temporary general license in the Bureau of Industry and Security's new 50% rule (see 2509290017) is “very limited” and could push exporters to apply for licenses “on an expedited basis to avoid noncompliance,” Morgan Lewis said in a client alert.