Commerce Reportedly Plans to Increase China-Related Export Controls, Add More China Companies to Entity List

The Commerce Department plans to roll back regulations that make it easier for U.S. exporters to sell goods that have both civilian and military purposes, making it more difficult for China to acquire U.S. technology, according to a May 23 report by Politico. As part of its plans, Commerce is considering ending a general policy of approving export licenses for products bound for civilian use, instead switching to reviews on a “case-by-case basis,” the report said. Commerce’s plans include “four regulatory actions” that target China under the Export Control Reform Act, including options that would revoke two license exceptions relating to shipping restricted technology to China and an option that would expand a ban on U.S. defense-related exports to China, the report said.

The Trump administration is hoping to “choke off Beijing’s access to key technologies” both through its restrictions on Huawei Technologies and five additional Chinese surveillance companies, Bloomberg reported May 23. The Chinese companies Commerce is considering include Hikvision and Dahua Technology, Politico reported. The moves are part of a larger push by the administration to “expand and toughen” U.S. export controls, Bloomberg said, specifically related to dual-use goods. Officials are pushing for broader definitions to restrict exports “related to technologies such as artificial intelligence, robotics and 3D printing that they call essential to competitiveness,” Bloomberg reported.

The moves by the Trump administration are “a direct response to the civilian-military fusion that is happening in China,” a person “close to the deliberations" between the U.S. and China told Politico. In April, panelists warned the U.S.-China Economic and Security Review Commission that China’s push to fuse its state and commercial sector poses a major threat to U.S. export controls (see 1904260018).

The changes would come on top of Commerce’s recent decision to place telecommunications network equipment maker Huawei on the Bureau of Industry and Security's Entity List and its decision to issue a temporary general license for certain transactions involving the Chinese company (see 1905200063). The Commerce Department didn't comment.