Source: United States House of Representatives – Congressman Michael McCaul (10th District of Texas)
WASHINGTON – Yesterday, House Foreign Affairs Committee Chairman Emeritus Michael McCaul (R-Texas) spoke in support of two pieces of legislation that would strengthen export controls on sensitive technology.
First, he urged his colleagues to support H.R. 8284, the Bureau of Industry and Security License Administration Enhancement Act — a bill he introduced to keep critical technology out of our adversaries’ hands. Specifically, the bill would enforce a “presumption of denial” standard for sensitive technology exports and reform the technical advisory committees so they are comprised of national security experts to advise the government on exports for critical sectors like AI, biotech, and aerospace.
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Remarks as delivered: We’re currently engaged in a defining global technology competition. To win that, the United States needs an export control system that is transparent, collaborative, and highly effective. Congress created the Bureau of Industry and Security and the export controls we rely on today. And while some view these controls through a trade lens, this committee has long recognized the true purpose, repeatedly making changes to address national security shortfalls as new threats emerge. At its core, this bill is a good governance bill. It does three critical things. First, it brings shadow regulations into daylight by forcing private, quote, “is informed,” unquote, letters to become public rules. Second, it modernizes our technical advisory committees to ensure we are getting advice from national security experts and not just commercial interests. And third, it requires the administration to report to Congress on its most complex semiconductor regulations, including the new foundry rule and the so-called white list. Right now, a company may receive a private notice from BIS called a, quote, “is informed” letter restricting their technology, while their competitor operates freely without knowing the rules have, in fact, changed. That uneven playing field stifles the very businesses we need to out-innovate our adversaries. And furthermore, these letters result in national security decisions being made without a voice from the Department of War and State, the very agencies tasked with defending our nation and advancing our foreign policy. This bill fixes this problem by modernizing the system Congress built. It ensures that our national security experts at the Pentagon, the State Department, and Department of Energy have permanent, formal seats at the table for these critical decisions. This legislation also brings those private shadow regulations into daylight. Sunlight is the best disinfectant. It says that if a national security threat is real, export controls must be made public. They must be clear. And they must apply to everyone evenly and fairly. This gives American businesses the certainty they need to compete on the global stage. The bill also ensures the government is getting the right advice from outside experts on these rapidly evolving technologies. For too long, our technical advisory boards have been made up solely of industry voices. This bill modernizes those boards, mandates a balance of industry specialists, academic researchers, and national security experts. It also ensures the technical advice driving our export controls is based on a clear-eyed view of the threat landscape. And finally, and crucially, the bill restores Congress’s vital oversight role. When it comes to the most sensitive technologies, like high-end chips driving the AI revolution, we cannot just hope our export controls are working. Congress must verify it. This legislation requires the Department of Commerce to review and report to Congress on their recent actions, including the new foundry rule and the so-called white list, as it expanded controls on high-bandwidth memory chips to prove these critical restrictions are actually keeping us safer. In order to win this technological competition, we need an export control system that gives American businesses predictability, gives our defense experts a voice, and gives Congress the visibility to hold the system accountable. This bill does all of that. And I think it’s a good governance bill, and I urge my colleagues to support it. And I yield back the balance of my time.
McCaul also spoke in support of H.R. 8170, the Multilateral Alignment 3 of Technology Controls on Hardware (MATCH) Act, which was introduced by Rep. Baumgartner (R-Wash.).
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Remarks as delivered:
During his first term, President Trump secured a signed agreement from the Dutch and Japanese governments to keep ASML’s and Tokyo Electron’s most advanced lithography machines out of the CCP’s hands. I know this firsthand because I was a part of that agreement. I met with the ambassadors. We discussed it. The agreement was ironclad. The Biden administration attempted to build on that foundation by restricting exports of AI chips and other semiconductor equipment. But rather than securing a strict agreement from our allies like the Trump administration did, the Biden administration naively acted on trust. American industry was asked to sacrifice for national security, and they complied, believing that our allies would follow suit. However, they did not. And that is the problem. And that is why we have this bill before us here today. Today, while American companies face strict export controls and real financial sacrifices, some of our closest allies are backfilling that market in China. Foreign companies are rushing in to make billions of dollars outfitting Chinese tech giants with the exact same tools American companies are banned from selling, often building those tools using American original software and components. This is not just a trade issue; it’s a security failure. It’s a diplomacy failure. We are shooting our own industry in the foot while China leaps ahead using chokepoint technology that they cannot build themselves. That is why the MATCH Act is so important. As Representative Baumgartner stated, we cannot have open back doors. This bill addresses the most dangerous gaps in our current system, and it gives the administration a clear mandate: a 150-day deadline to re-engage our allies in diplomatic negotiations to construct a signed agreement — not one based on trust, but an ironclad signed agreement that they will match the controls we already have in place on our equipment. But our patience is not infinite. If allied countries refuse, this bill says that we will put export controls on U.S. intellectual property inside these tools, ensuring that they can never be sold to China. Not from us, and not from our allies. If we stop the tools and the technicians, then we can stop the CCP’s progress. We need a united front against the CCP and a level playing field for American companies. We cannot allow our allies to profit from the risks we take to protect the free world, while they, in turn, go around the back door and profit off this loophole the Biden administration created. So let’s fix this problem. That’s what this bill does. I urge my colleagues to support it, and I yield back the balance of my time.