As the Biden Administration prepares to hand over the reins, there's a palpable sense of urgency to get as much regulatory work done as possible before January 20th.
The Bureau of Industry and Security (BIS) regulatory agenda has dozens of rulemaking actions underway, including further steps targeting the illicit trade in advanced chips.
The Global Artificial Intelligence Diffusion" rule aims to control the global shipments of graphics processing units (GPUs) to forestall diversion through third countries. Restrictions are said to include geographic controls as well as a worldwide licensing system that includes reporting requirements and exceptions, according to reporting in the South China Morning Post.
This "Export Control Framework for Artificial Intelligence Diffusion" has elicited pushback from industry.
"Missing from this Diffusion Framework is any discussion of the core question facing the U.S. as we deploy AI globally: is it more strategic for America to “flood the zone”—providing the global infrastructure on which AI models will be trained and run—ensuring U.S. leadership of this critical technology? Or should the U.S. “circle the wagons,” replacing decisive action with a thinly veiled hope to buy time (for what, exactly?), while throwing the door wide open for our adversaries and competitors," notes Ken Glueck EVP at Oracle.
House China Hawks John Moolenaar (R-MI) and Raja Krishnamoorthi (D-IL) called for "strict redlines" in the pending framework.
"This is a unique opportunity for the United States to use its leadership in AI technology to push other countries to limit their interactions with the PRC in contexts where it threatens our national security interests." the lawmakers wrote to Commerce Secretary Gina Raimondo. Specificly they call for blocking access to GPUs for countries which host PRC military bases or "Huawei cloud computing infrastructure."
A related rule in advanced status is the reporting requirement related to dual-use artificial intelligence (AI) foundation models and large-scale computing clusters. [89 FR 73612] Proposed on September 2024, the rule compels entities developing dual-use AI models or managing computing clusters meeting specified technical thresholds to report to BIS quarterly on recent activities, plans for the next six months, or confirmation of no reportable activities.
Biological Equipment. BIS plans to introduce new export controls on certain biological analytical and processing equipment, citing potential national security risks. If implemented, the restrictions would establish a new Export Control Classification Number on the CCL. The agency anticipates issuing this rule soon.
Weapons Sales Reporting Another proposed rule aims to revise reporting regulations for offset agreements linked to the sale of weapons systems and defense-related items. BIS intends to clarify the information U.S. firms must submit annually and refine definitions to enhance its “Offsets in Defense Trade” report to Congress.
Aircraft reciprocating or rotary engines and powdered metals and alloys have been identified by BIS for evaluation as Section 1758 technologies, or emerging and foundational. Commerce proposes new regional stability controls on same.
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