Senators Ask Administration for Public Comment Periods, More Transparency When Issuing Tech Export Controls
Republican lawmakers urged the Commerce Department to be more transparent when imposing export restrictions on critical U.S. industries, saying they are concerned that Commerce did not consult with industry before imposing significant export regulations last week. In a May 6 letter, six senators asked President Donald Trump to more closely follow congressional intent as described in the 2018 Export Control Reform Act, which lists a preference for a public comment period and multilateral export controls over unilateral decisions.
The letter comes a week after Commerce expanded licensing requirements for certain exports to China, Russia and Venezuela (see 2004270027) and eliminated a license exception for civil end-users (see 2004270026). The senators said they are especially concerned about the impact on the U.S. semiconductor industry. “At this time of economic crisis and uncertainty, we urge the department to proceed cautiously, solicit feedback from industry, and ensure that well-intentioned proposals do not have unforeseen, damaging effects on the U.S. economy,” according to the letter, signed by Sens. Todd Young, R-Ind.; Marsha Blackburn, R-Tenn.; Susan Collins, R-Maine; Ron Johnson, R-Wis.; John Cornyn, R-Texas; and Jerry Moran, R-Kan.
The senators called tech manufacturers a “central part of the U.S. economy,” adding that the administration's efforts to “restore American manufacturing” should “align” with ECRA to “maintain U.S. leadership in areas essential to innovation.” That effort should include discussions with industry before imposing final rules and export restrictions, the lawmakers said. “We are concerned that the Department of Commerce” avoided “consultation with industry and without full consideration of the impact on the economy,” the letter said.
Technology and semiconductor trade groups have voiced concerns over the administration’s efforts to impose more export restrictions that block sales to China (see 2005010037 and 2004070024). Observers have suggested Commerce’s latest regulations could significantly harm the U.S. semiconductor industry by cutting off sales to a wide range of Chinese customers (see 2005060017 and 2005050035). Commerce said it plans to issue a guidance to industry on complying with the new restrictions (see 2004280052).