Do More to Restrict Emerging Tech Exports to China, Senators Ask Trump Administration
The Trump administration should do more to restrict sales of emerging technologies to China, lawmakers said in recent interviews. The administration hasn't issued regulations under authority granted by Congress 19 months ago. Senators commended the administration for increasing foreign direct investment restrictions and going further than previous administrations in confronting China’s unfair trade practices. They will continue pushing for tighter restrictions.
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“A lot more needs to be done,” said Sen. Marco Rubio, R-Fla. The U.S. has been “way too sanguine” about allowing China to take over supply chains once controlled by the U.S., said Sen. Josh Hawley, R-Mo. “It’s coming back to bite us.”
Although the controls are proposed by Commerce, outside factors may be slowing rollout, Rubio said. “I wouldn't say Commerce has always been the problem,” he said. “If there's a problem, it usually comes out of Treasury.” That department didn't comment last week. Hawley hasn't heard of “deliberate” efforts to delay the controls and urged the administration to speed up.
Sen. Chris Coons, D-Del., wants the administration to take more aggressive action, acknowledging he may not know the full extent of what officials have done. He said the administration has taken “fairly aggressive action” to limit Chinese acquisition of U.S. technology, noting February implementation of the Foreign Investment Risk Review Modernization Act, which gave the Committee on Foreign Investment in the U.S. the ability to review transactions involving critical tech. “This should be a bipartisan effort,” Coons said. “I don't want to be critical when they may be doing more than I realize.”
Commerce “continues to identify emerging technologies that warrant control,” emailed a Bureau of Industry and Security spokesperson. “The Department has imposed controls on six emerging technologies,” the spokesperson said: It will continue to “evaluate additional technologies for unilateral and multilateral control.”
Some companies are relieved Commerce’s foundational tech effort took so long, and hope the rules are postponed, trade lawyer Doug Jacobson said. Others said that's false hope.