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Saturday, December 21, 2024

Moolenaar calls on Raimondo to address loopholes in export control rules

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Congressman John Moolenaar Chairman of the Select Committee on the CCP | Facebook

Congressman John Moolenaar Chairman of the Select Committee on the CCP | Facebook

Chairman John Moolenaar has addressed a letter to Secretary of Commerce Gina Raimondo concerning the recent export control rule announced on December 2, which regulates American advanced semiconductor technology exports to China. Moolenaar expressed concerns that the new rules contain loopholes allowing Chinese entities continued access to U.S. technology and questioned the influence of the semiconductor industry on the Bureau of Industry and Security's (BIS) decision-making.

"There is no national security justification for these loopholes," stated Moolenaar. He urged Raimondo to close these loopholes swiftly and requested that all related documents be preserved for review by the transition team.

The new rule includes exceptions for certain semiconductor manufacturing facilities operated by blacklisted entities, allowing them to continue receiving U.S. technology. It also permits Huawei to circumvent restrictions through its network of semiconductor fabrication facilities and does not address ChangXin Memory Technologies (CXMT), which is advancing in semiconductor production.

Moolenaar noted that while some Huawei facilities were added to the Entity List with stringent licensing policies, others like SwaySure Technology received special carve-outs. The Chairman criticized BIS's approach as insufficient for protecting national security, citing inconsistent licensing policies across Semiconductor Manufacturing International Corporation (SMIC) locations.

The letter also highlighted concerns about potential technology transfers between connected PRC fabs via "wafer bridges" or tunnels, suggesting stronger counter-diversion measures are needed.

Moolenaar concluded by reiterating his request for swift action from Raimondo and preservation of relevant documentation related to the export control update.

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