China export controls would damage U.S. competitiveness, industry warns
Sixteen large industry groups warned the U.S. commerce secretary about the possible damages to American shippers if the government follows through with implementing a recently proposed rule for exports to China.
“We recognize that China policy is complicated and multifaceted, but we are concerned that U.S. objectives towards China will not be sufficiently met and U.S. competitiveness will be negatively impacted by excessively broad, unilateral export controls,” said the group in a recent letter to Commerce Secretary Carlos Gutierrez.
The department’s Bureau of Industry and Security proposed the regulation on July 6. If implemented, the regulation calls for the development of a certified Chinese importer program and focuses its licensing controls on nine categories of high-tech exports to China. The proposed rule is specifically designed to try to keep certain “dual use” items, or commercial goods with possible military applications, out of the hands of Chinese weapons development programs.
The industry groups called the proposed rule a “scattershot pattern of regulatory developments” toward China, and said these types of rulemakings further alienate the United States from its allies involved in international export control regimes, such as the Wassenaar Arrangement.
“A unilateral control on widely available products will not be effective,” the groups’ letter said. “As we have seen with night vision equipment, a unilateral approach inevitably undermines both U.S. competitiveness and security, encouraging other countries to design U.S. technology out of their products.”
Some of the groups to sign the letter are AeA, Coalition for Employment through Exports, Information Technology Industry Council, National Foreign Trade Council, Semiconductor Industry Association, and the U.S. Chamber of Commerce.
“We believe that the development and implementation of a broader China policy in conjunction with our allies should balance national security and economic interests,” the groups said.