GOP Pushes Tougher Communist China Dual-Use Sanctions

On January 31st, Bryant Harris, author of the U.S. “Defense News” weekly reported: Although the U.S. government has significantly expanded comprehensive new export controls on U.S. technology that may be used by the PLA military, Republicans are using their majority gain in the House of Representatives, pushing for tougher sanctions on Communist China dual-use (military and civilian) equipment. Mike McCaul, the new House Foreign Affairs Committee chairman from Texas, has opened a three-month review of the Commerce Department’s Bureau of Industry Security (BIS) in response to his more than two year request on export control licenses that the agency has provided for Communist China. Throughout the review process, congressional staff are mulling potential reforms to the process, ranging from public reporting requirements to more drastic measures such as moving BIS to the Pentagon or other departments. Chairman Mike McCaul first announced the review in a January 20th letter to Commerce Secretary Gina Raimondo, noting that BIS had “failed to uphold its legal obligation to produce requested documents and information.” When the bureau adds Chinese companies such as semiconductor maker SMIC or telecommunications giant Huawei to its export control list, it must approve or deny license applications by U.S. technology companies to export equipment to Communist China. McCaul’s request to BIS dates back to November 2020, but he did note in his January letter that the agency has since provided Congress with a six-month briefing on Communist China’s export controls, and Republicans find this worrisome. “It showed that less than 1% [of licenses] were declined while $60 billion went into Huawei and $40 billion went to SMIC,” McCaul said.