The Bureau of Industry and Security reinstated a pause on export license applications last week, four people with knowledge of the situation said, days after officials announced at the agency’s March update conference that licensing was expected to soon return to normal.
Four Democratic lawmakers said this week that the Bureau of Industry and Security’s plans to pull back from traditional export control dialogues with allies, including the U.S.-EU Trade and Technology Council, will reduce international collaboration and make it harder to keep sensitive technology out of the hands of China.
House Select Committee on China ranking member Raja Krishnamoorthi, D-Ill., and Rep. Jake Auchincloss, D-Mass., urged the Trump administration March 31 to investigate whether China’s Yantai iRay Technology Co. Ltd. is evading U.S. sanctions by selling its thermal imaging products in the U.S. through subsidiaries and other affiliated entities.
The Bureau of Industry and Security is ending its work in the U.S.-EU Trade and Technology Council as part of a broader effort to pull back from traditional export control dialogues with allies, Jeffrey Kessler, the head of BIS, said in a closed-door meeting with agency officials last week. Kessler also said the agency plans to significantly increase export enforcement against China, warned about possible staffing cuts, urged officials to tamp down on conversations with industry, and said it’s unclear whether existing export controls against Russia will be maintained.
The U.S. is asking Malaysia to more closely track shipments of advanced semiconductors, including chips made by U.S. firm Nvidia, to make sure they’re not transiting the country before ending up in China in violation of U.S. export controls, the Financial Times reported. Trade Minister Zafrul Aziz said the U.S. is “asking us to make sure that we monitor every shipment that comes to Malaysia when it involves Nvidia chips,” according to the report. “They want us to make sure that servers end up in the data centres that they're supposed to and not suddenly move to another ship." Aziz also said Malaysia recently formed a task force to tighten regulations around the country’s data center sector, which relies on Nvidia chips.
Commerce Secretary Howard Lutnick has terminated the agency’s Advisory Committee on Supply Chain Competitiveness along with 13 other advisory committees, the Commerce Department said on its website. Lutnick “determined that the purposes for which fourteen of the discretionary advisory committees were established have been fulfilled, and the committees have been terminated” effective Feb. 28.
Senior Bureau of Industry and Security officials haven’t yet been given orders by the Trump administration on several key export control policy issues, including possible plans to soon relax export controls against Russia, multiple Commerce Department officials said last week.
The Commerce Department’s long-awaited proposed rule on routed exports is essentially ready to be published, but it’s unclear how long it may take the new Trump administration to give the agency the green light, officials said last week.
The Bureau of Industry and Security is working on multiple export control-related investigations that could soon lead to public penalties and criminal indictments, Commerce Department officials said last week. They also said BIS is doubling down on Iran-related enforcement as part of the Trump administration's renewed maximum pressure campaign against the country.
Jeffrey Kessler, the undersecretary of the Bureau of Industry and Security, has been sworn in to his new position, the Commerce Department announced March 20. Kessler was confirmed by the Senate March 13 (see 2503130062 and 2503060043).