BIS Emerging Tech Effort Causing Industry 'Uncertainty,' Microsoft President Says

The Bureau of Industry and Security's effort to control emerging and foundational technologies is creating “substantial uncertainty” in the technology sector, Microsoft President Brad Smith told the Senate Armed Services Committee Feb. 23, according to his prepared testimony. Smith urged BIS and the Commerce Department to create a “balanced and coherent framework” to protect U.S. technologies without “isolating” U.S. companies, including from working with China.

“Given the stakes and uncertainty, the urge to err on the side of caution by adopting ever more restrictive policies in this space is understandable,” Smith said. “But that approach could weaken national security by undermining American technology leadership.” He said the U.S. should allow “technology-related trade and investment” with China when it is “clearly in the interest” of U.S. technology leadership. “As modern as China may be today, the country still depends on American technology and standards,” Smith said. “To pull away from that position and accelerate China’s adoption of its own, competing approaches risks jeopardizing American leadership in critical areas.”

Smith also pointed to comments submitted by Microsoft to BIS last year that outlined similar concerns and advocated for a new export control regime and monitoring system based on technology and software features implemented into the products (see 2012230069). “A new and more calibrated approach is needed,” Smith said. A BIS spokesperson has said the agency reviews industry comments and takes them seriously.