Commerce Department failing to keep sensitive tech away from Chinese military, panel warns

The U.S. Commerce Department is not doing its part to defend national security and prevent the Chinese military from obtaining sensitive technology, according to a U.S.-China Economic and Security Review Commission report.

According to Reuters, the report said that the Department of Commerce has been slow to craft a list of sensitive technology that should be examined prior to being exported to China, and that the delay in making the list of emerging and foundational technologies might exacerbate risks to national security.

"Defining a list of 'emerging and foundational' technologies is a crucial part of implementing the Foreign Investment Risk Review Modernization Act (FIRRMA) and the Export Control Reform Act (ECRA)," the report says. "Since these acts became law in 2018, there has been a significant delay in forming this list along with a lack of clarity on the process and methodology. The list would support the development of the new controls directed by these two acts and identify additional national security risks not covered by preexisting control lists. In crafting ECRA, Congress entrusted the U.S. Department of Commerce with implementing its intent for strengthening U.S. export control laws, but the Department of Commerce has, to date, failed to carry out its responsibilities."

Reuters reported that the Commerce Department said via a statement that it has published four rules regarding controls on emerging technologies and that there are additional rules pending. The outlet also said that the department noted that it enlarged the military end user rule and added businesses to an entity list, which restricts American suppliers from selling to businesses such as Huawei.