David Sacks, the president's AI policy adviser, said the Biden-era AI diffusion export control rule was an “overreach” of U.S. export control authority and alienated American allies. The Bureau of Industry and Security’s plan to rescind the rule (see 2505070039 and 2505080026) was an “excellent decision,” he said last week.
The Bureau of Industry and Security is preparing to publish a notice that will officially rescind the AI diffusion export control rule released by the Biden administration in January, according to the Office of Information and Regulatory Affairs. BIS sent the notice for interagency review on May 7 (see 2505070039).
The Census Bureau this week updated two license type codes in the Automated Export System to reflect which Export Control Classification Numbers can be used with those codes, which need to be reported for certain chip-related exports.
The Senate Banking Committee voted 13-11 along party lines May 6 to approve Landon Heid to be assistant secretary of commerce for export administration, sending his nomination to the full Senate for consideration.
Companies must spend more resources on export compliance, and governments need to do a better job of coordinating and updating multilateral export control lists, in order to prevent Russia, Iran and other “rogue actors” from buying as many sensitive dual-use goods, researchers said this week.
During a closed-door meeting with U.S. lawmakers May 1, Nvidia Chief Executive Officer Jensen Huang reiterated his opposition to the Bureau of Industry and Security’s recent AI diffusion rule, the company said.
Although the Bureau of Industry and Security's AI diffusion export control rule has sparked broad pushback from some U.S. allies, it appears to take a “strong step” toward improving BIS efforts to prevent chip smuggling to China, said researchers with the Center for a New American Security. If the Trump administration decides to tweak parts of the rule or revoke it altogether, the researchers warned, the U.S. will need to find other ways for BIS to better enforce its chip controls.
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The Trump administration’s plans to reduce export control cooperation with allies, particularly the EU, could lead to more differences between the two jurisdictions' export systems, especially for controls targeted toward China, lawyers said this week.
The Bureau of Industry and Security said April 24 that it added 18 entities to its Unverified List after it was unable to verify the “legitimacy and reliability” of the parties through end-use checks, including their ability to responsibly receive controlled U.S. exports. It also removed five companies from the list.