{"id":33236,"date":"2023-01-30T22:18:37","date_gmt":"2023-01-30T22:18:37","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2023\/01\/30\/gop-pushes-tougher-china-dual-use-sanctions-cites-lax-enforcement\/"},"modified":"2026-08-20T12:32:39","modified_gmt":"2026-08-20T12:32:39","slug":"gop-pushes-tougher-china-dual-use-sanctions-cites-lax-enforcement","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/2023\/01\/30\/gop-pushes-tougher-china-dual-use-sanctions-cites-lax-enforcement\/","title":{"rendered":"GOP pushes tougher China dual-use sanctions, cites lax enforcement"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 Republicans are using their brand-new House majority to push for tougher China sanctions enforcement on dual-use equipment even as the Biden administration greatly expands sweeping new export controls on U.S. technology that could be used by the Chinese military.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new House Foreign Affairs Committee chairman, Mike McCaul of Texas, has launched a three-month review of the Commerce Department\u2019s Bureau of Industry Security in response to his more than two-year-old requests on export control licenses that the agency has granted for China. Throughout the course of the review, congressional staffers are mulling potential reforms to the process, ranging from public reporting requirements to more drastic measures like moving the Bureau of Industry Security to the Pentagon or another department.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cOur government doesn\u2019t have time to complain that these problems are tough,\u201d McCaul said in a Sunday statement after<a href=\"https:\/\/www.wsj.com\/articles\/chinas-top-nuclear-weapons-lab-used-american-computer-chips-decades-after-ban-11674990320?mod=hp_lead_pos1&#038;utm_source=Sailthru&#038;utm_medium=email&#038;utm_campaign=1\/30\/23%20%20Punchbowl%20News%20AM&#038;utm_term=Punchbowl%20AM%20and%20Active%20Subscribers%20from%20Memberful%20Combined\" target=\"_blank\"> a Wall Street Journal report <\/a>on advanced U.S. microchips found in China\u2019s leading nuclear weapons research lab. \u201cWe need solutions.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The chairman first announced the review on Jan. 20 in a letter to Commerce Secretary Gina Raimondo, noting that the Bureau of Industry Security had \u201cfailed to uphold its legal obligation to produce requested documents and information\u201d to the Foreign Affairs Committee. When the bureau adds a Chinese company such as semiconductor manufacturer SMIC or telecommunications giant Huawei to its export control list, it must then approve or deny license requests from U.S. tech companies to export their equipment to China.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThat\u2019s the main thing we need from them,\u201d McCaul told Defense News in a hallway interview on Capitol Hill last week. \u201cHow many licenses were declined, and where did they go?\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">McCaul\u2019s requests to the Bureau of Industry Security date back to November 2020, but his January letter did note that the agency has since provided Congress with a six-month snapshot of its China export controls \u2013 which Republicans find concerning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt showed that less than 1% [of licenses] were declined and $60 billion went into Huawei and $40 billion went to SMIC,\u201d McCaul said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Congress received another tranche of data on export control approvals last week, which staffers on the Foreign Affairs Committee are now sifting through. Their findings will inform potential legislative reforms to the Bureau of Industry Security\u2019s export control list.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe do want a reporting requirement because they never report to the public on export licenses,\u201d said McCaul. \u201cWe want a full accounting of that.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether or not the bureau provides a full accounting could influence the scope of any legislation that emerges from McCaul\u2019s three-month review period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Republican staffer from the Foreign Affairs Committee previewed other potential export control reforms on the condition of anonymity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor a few years now, there\u2019s been chatter about whether there should be one single licensing agency,\u201d the staffer told Defense News, noting that export control regimes are currently split between the State Department\u2019s munitions list and the Commerce Department\u2019s dual-use items list. \u201cPart of what we\u2019re looking to do is figure out if the existing system is the best arrangement or if it should whole-sale be put somewhere else or if different aspects of the export control system should have different agencies as the lead.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The staffer pointed to <a href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/9241\/text?r=14&#038;s=1\" target=\"_blank\">legislation introduced last year by Rep. Jim Banks, R-Ind.,<\/a> which would transfer the Bureau of Industry Security from the Commerce Department to the Pentagon\u2019s Defense Technology and Security Administration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Bureau of Industry Security did not reply to Defense News\u2019 request for comment. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">McCaul and Republicans<a href=\"https:\/\/www.defensenews.com\/global\/asia-pacific\/2023\/01\/12\/how-bidens-microchip-ban-is-curbing-chinas-ai-weapons-efforts\/\" target=\"_blank\"> praised President Biden\u2019s massive expansion of the dual-use export control list last year to include numerous additional restrictions on transferring U.S. technology to Chinese semiconductor and artificial-intelligence companies<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Still, the U.S. had banned the export to Beijing of the semiconductors found in the Chinese nuclear lab since 1997 \u2013 highlighting the Bureau of Industry Security\u2019s enforcement challenges even if the Biden administration consistently denies export license requests under its sweeping new microchip regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe next piece is examining whether or not they approve or deny licenses,\u201d said the staffer. \u201cAnd for that piece, it\u2019s why transparency to Congress is so important, so we actually see how the policy is being implemented.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhatever rule we come up with, the [People\u2019s Republic of China] is going to try to find ways around it,\u201d the staffer added. \u201cIt\u2019s one of those things where it\u2019s somewhat never-ending.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For his part, McCaul took pains to differentiate his export control review with his concurrent Afghanistan withdrawal investigations and noted that he wants to have \u201ca good working relationship\u201d with Raimondo and the Commerce Department.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI think we both agree on the same goals,\u201d said McCaul. \u201cThey\u2019re very security-minded, which is good for commerce, because usually they\u2019re more industry and not security.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new House Foreign Affairs chairman worries that the Commerce Department grants too many licenses for technology that the Chinese military could 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