Letter to Commerce Secretary on Dangerous Loopholes in New Export Control Rules
Chairman John Moolenaar sent a letter to Secretary of Commerce Gina Raimondo regarding the newly released December 2nd export control rule on American advanced semiconductor technology going to China. The Chairman wrote with concern that these rules create loopholes that will continue to allow Chinese bad actors to access US technology and raise questions about the undue influence of the semiconductor industry over the Bureau of Industry and Security's decision-making.
The Chairman wrote, "There is no national security justification for these loopholes. Rather, their existence seems to imply that press reporting on industry influence over BIS are accurate. I ask that with your remaining time at the Department of Commerce, you work to close these loopholes as quickly as possible. I also ask that the Department of Commerce preserve all documents and communications in its custody referring to or related to this most recent export control update so that the transition team can properly identify any other loopholes created over the course of this latest round of updates."
The new export control rule included several key loopholes, like:
an exception that allows specific semiconductor manufacturing facilities, known as fabs, operated by blacklisted entities, to continue to receive U.S. technology. This further weakens our Entity List and jeopardizes our national security.
loopholes for Huawei to continue circumvent US restrictions using its network of semiconductor fabrication facilities and took no action against ChangXin Memory Technologies (CXMT), which is poised to become a leader in advanced semiconductors.
a loophole for PRC semiconductor champion, Semiconductor Manufacturing International Corporation (SMIC) to continue to access U.S. technology, despite being on the Entity List.
Click HERE to view the letter