Foundational Tech Controls Could Hurt US Innovation, Tech Leadership, Industry Group Says

U.S. export controls on foundational technologies would impede U.S. innovation and do little to reduce national security concerns, the Computer and Communications Industry Association said in a letter to the Bureau of Industry and Security. The group urged BIS to construct a “narrowly tailored” export regime or risk stymieing U.S. leadership in a range of technologies.

“The controls as outlined in the Federal Register notice would limit U.S. exports to global customers, risk technological advancements, and deter global adoption of U.S. technologies,” CCIA said in the Oct. 26 letter. BIS requested comments in August on the potential controls, and feedback is due Nov. 9 (see 2010070012).

A BIS spokesperson said the agency will closely review comments, which will help it “inform” potential controls. “BIS takes very seriously the input we receive from industry,” a spokesperson said in a Nov. 2 email.

CCIA warned that “overbroad controls” would burden U.S. companies and put them at a disadvantage with foreign competitors that do “not face similar restrictions.” CCIA also said the controls -- although intended to keep China from gaining access to sensitive technologies -- could help Chinese companies reach more customers and replace U.S. exporters in global markets. “There is a real risk that excessive controls will bolster Chinese competitors at a precarious time when U.S. companies are strongly competing with large Chinese technology firms,” the group said.

CCIA also said it is concerned that controls over foundational technologies could result in restrictions on goods that are already widely available. Unlike BIS’s effort to control emerging technologies (see 1911070014) -- items that are still being developed -- the agency’s foundational effort may seek to control overlooked technologies that should be controlled but aren’t. “Many ‘foundational technologies’ are now ubiquitous in products around the world, and additional controls will not be more effective than ones already in place,” CCIA said. “Technology-based controls would be broader than necessary to achieve national security objectives.”

If BIS does issue foundational technology controls, the agency should only impose restrictions after a thorough process, the group said. BIS should first determine whether the technology under consideration provides the U.S. with a “specific and identifiable qualitative advantage,” confirm that it is “essential” to U.S. national security concerns, and determine whether the item is available in foreign countries. “If the U.S. is to move forward with these controls, there should be a clear and careful process to ensure that the controls are narrowly targeted,” CCIA said.