House Republicans introduced the Prioritizing National Security in Export Controls Act of 2022, which would shift export control management from the Bureau of Industry and Security (BIS) to the Defense Technology and Security Administration (DTSA). Thousands of Chinese entities may meet the criteria for export restrictions, the bill argues, a number well beyond the 70 entities listed by the Commerce Department. The bill seeks to review and resolve the apparent conflict of interest between “promoting trade and protecting United States national security.”
“The true reason Commerce is dead set against restricting foundational technology is American companies make a good deal of money selling products utilizing foundational technology to China,” Derek Scissors of the American Enterprise Institute said. An August Wall Street Journal report found that nearly all export requests to China are approved: 'A Commerce Department-led process that reviews U.S. tech exports to China approves almost all requests and has overseen an increase in sales of some particularly important technologies, according to an analysis of trade data. Of the U.S.’s total $125 billion in exports to China in 2020, officials required a license for less than half a percent, Commerce Department data shows. Of that fraction, the agency approved 94%, or 2,652, applications for technology exports to China, the analysis showed.' “The result: The U.S. continues to send to China an array of semiconductors, aerospace components, artificial-intelligence technology and other items. Critics say such sales, which have taken place across successive U.S. administrations, could be used to advance Beijing’s military interests,” Kate O’Keeffe wrote.