The Trump administration’s request for an increased budget allocation for the Bureau of Industry and Security (see 2505020030) signals that export enforcement will be one of the administration's top priorities, said Gregory Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies.
The U.S. needs to better enforce its existing export controls on advanced AI chips and chip equipment while bolstering its ability to screen Chinese investments that may be looking to evade those restrictions, several witnesses told Congress this week. But another witness said the current U.S. chip controls have so far failed and called on the government to rework its export control strategy.
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.
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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.
The Trump administration wants Congress to increase funding for the Bureau of Industry and Security by $132 million or 77% in FY 2026 to prevent sensitive U.S. technology from falling into the wrong hands, a senior administration official said May 2.
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.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.