Sen. Rubio Calls for Tighter Restrictions on Chip Exports to China
Sen. Marco Rubio, R-Fla., said Sept. 3 that the Bureau of Industry and Security is failing to stem the flow of U.S.-made advanced computing chips to China and must take additional steps to stop the “semiconductor leakage.”
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
One such step should be directing BIS to “adopt a blanket ‘presumption of denial’ posture for export license applications that would send critical technology to any entity” based in China, Rubio wrote in a letter to Commerce Secretary Gina Raimondo. Rubio said that while a bill he introduced last year would require BIS to take such an approach with China and Russia (see 2306230040), Raimondo already has the authority under the Export Control Reform Act of 2018 to implement such a policy, and he urged her to use that power "immediately."
Rubio said that recent news reports show Chinese entities import thousands of Nvidia artificial intelligence chips annually and distribute them to People’s Liberation Army-affiliated entities that are restricted by BIS from obtaining such chips. Rubio is concerned the PLA could use the chips to improve its battlefield capabilities.
"Cutting-edge chips are some of America’s most advanced developments in computer hardware," he wrote. "Preventing America’s adversaries from weaponizing these components for nefarious purposes is vital to our national security."
Commerce didn’t respond to a request for comment on Rubio's letter, and Nvidia declined to comment. But Raimondo testified before a congressional panel in May that Commerce will revoke an export license when newly available information supports such a move (see 2405080039).
Sen. John Kennedy, R-La., sent a similar letter to Raimondo in July (see 2407090030). An Nvidia spokesperson said at the time that the company was investigating reports that “unauthorized parties claim to have small numbers of restricted products for sale” (see 2407100004).