The Commerce Department should adopt a blanket “presumption of denial” posture for export license applications that would send critical technology to any entity based in China, according to Sen. Marco Rubio (R-Fla). Commerce should impose the strict controls because of the demonstrably high risk that such applications are intended to circumvent export controls, the senator said.
In a letter to Commerce Secretary Gina Raimondo, Sen. Rubio blasted Commerce’s Bureau of Industry and Service for failing to stop China from accessing cutting-edge chip technology made in the United States.
He cited a recent report by the Wall Street Journal indicating that China has received thousands of advanced chips annually via third-party vendors in arguing that a blanket “presumption of denial” should be applied.
“Any serious effort to deny America’s adversaries access to powerful technologies mandates an unwavering export regime,” he wrote. “As recent news reports demonstrate, BIS’ current entity list approach is porous and ineffective. If you are serious about protecting American technology, the only effective solution is for BIS to aggressively deny licenses that would permit the export of advanced semiconductors to any entity that is based in the PRC. I urge you to direct BIS to address the semiconductor leakage at once.”
The senator pointed out that he introduced legislation last year that would require BIS to adopt this approach for all entities in China and Russia, but stressed the Administration already has the authority to act under the Export Control Reform Act of 2018.
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