Commerce 'Slow' to Propose Controls on Emerging Tech, Senators Say in Letter to Ross

The Commerce Department has been “slow” to complete a series of export control reviews mandated by the Export Control Reform Act, including the agency’s upcoming controls on emerging and foundational technologies, Sens. Chuck Schumer, D-N.Y., and Tom Cotton, R-Ark., said.

In a Nov. 18 letter to Commerce Secretary Wilbur Ross, the two senators said Commerce has lagged behind the Treasury Department’s work to address Chinese trade and investment threats, pointing to Treasury’s September proposed regulations for the Foreign Investment Risk Review Modernization Act (see 1909180018). The proposed emerging technology controls being examined by Commerce, including controls on artificial intelligence and quantum computing, have yet to be released and could be “key components of future warfare,” the senators said.

The senators asked Ross to provide an update on the status of the agency’s review of emerging technologies, whether the agency has created an interagency working group to lead the process and whether the controls will be proposed multilaterally. “We understand the technical challenges of evaluating cutting-edge technologies, as well as the staffing and institutional challenges faced by the Department of Commerce, but it is imperative that the Department act expeditiously to develop guidance around these technologies to prevent them from being exported to our military competitors,” the letter said. Companies, trade groups and Bureau of Industry and Security officials are growing frustrated with the delay (see 1911070014). Commerce officials expect to release the controls this year (see 1910290062).

The senators also asked for updates on Commerce’s review of license requirements for exports, re-exports or in-country transfers of items to countries subject to U.S. embargoes as mandated by the 2019 National Defense Authorization Act. The review should examine China’s efforts to evade U.S. embargoes by stealing U.S. technology and acquiring dual-use goods that should be controlled, the letter said. The senators asked whether the review will identify “specific sectors” of the economy that China is targeting, whether Commerce plans to modify the export controls after the review and whether the changes will be made public. “We urge you to conduct these mandatory reviews as quickly and thoroughly as possible,” the letter said.