Licensing
On September 23, the Inspector General's Office of the Department of Commerce released its audit of the Bureau of Industry and Security’s (BIS’) efforts to "counter China’s Military-Civilian Fusion strategy"
The auditors found the BIS export license approval process "adequate in reducing the risk" of controlled items being inappropriately approved for export to China. However, they found that BIS has "not minimized the risk of unauthorized release of controlled technologies and software to China."
House Republican national security leadership called for the White House to expand license-free defense trade among the U.S., U.K., and Australia to ensure the success of AUKUS Pillar Two and "unleash the combined potential of the three countries’ defense industrial bases to counter the Chinese Communist Party."
The lawmakers contend the Excluded Technologies List (ETL) "jeopardizes the viability of Pillar Two."
The Department of Commerce has expanded the Validated End User (VEU) program with additional controls for data center items destined for China and India.
Data Center VEU adopts much of the framework of the existing VEU program, with additional requirements. This expansion of eligibility is intended to update the VEU program to recognize the advancement and benefits of artificial intelligence.
In response to requests from the public, The Departments of State and Commerce extended the comment period for their rule changes proposed 29 July impacting ITAR definitions of "defense services," and EAR restrictions on end user and Commerce Control List-based controls. Comments are now due by 15 October.
AUKUS Defense ministers met in London Thursday to review the partnership and "reiterate their shared commitments for the decades to come," according to a readout of the conference.
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