Safeguarding US Emerging Technologies with Export Controls

Safeguarding US Emerging Technologies with Export Controls

By The Fatty Fish Editorial Team - May 31, 2023

Export controls for critical and emerging technologies refers to regulations implemented by the US government to control the export of specific technologies that are considered essential for national security, economic competitiveness, and foreign policy interests. These controls are primarily enforced by the Department of Commerce Bureau of Industry and Security (BIS) and the Department of State Directorate of Defense Trade Controls (DDTC). The US export controls framework consists of two main components: the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). The EAR is administered by the BIS and covers most commercial and dual-use items, while the ITAR, administered by the DDTC, controls defense articles and services.

In recent years, the US government has placed increased emphasis on critical and emerging technologies due to their potential dual-use nature and their significance to national security. The exact list of critical and emerging technologies is regularly updated, but it generally includes areas such as:

AI and machine learning (ML) technologies
Robotics
Quantum computing and encryption
Biotechnology
Autonomous vehicles
Aerospace technologies
Energy storage and generation technologies

Export controls for critical and emerging technologies can involve licensing requirements, restrictions on end users or end uses, and limitations on the transfer of technology or technical data. The specific controls can vary depending on factors such as the sensitivity of the technology and the destination country or entity. It is important for exporters and individuals involved in technology-related transactions to be aware of these controls and ensure compliance with the applicable regulations. The BIS and DDTC provide guidance, licensing procedures, and information about specific controls through their respective websites. Here is an opinion piece we found of interest relating to the importance of export controls for critical and emerging technologies for the US national security and economy.

Optimizing Export Controls for Critical and Emerging Technologies

In an opinion piece for the Center for Strategic and International Studies, “Optimizing Export Controls for Critical and Emerging Technologies,” William Alan Reinsch, senior adviser and Scholl Chair in International Business; Emily Benson, director, Project on Trade and Technology and Senior Fellow, Scholl Chair in International Business; Thibault Denamiel, research associate, Scholl Chair in International Business; and Margot Putnam, intern, Scholl Chair in International Business; discuss their recent report in which they seek to propose a fresh perspective on the existing strategy for export controls, specifically in areas of emerging technologies that are highly sensitive and might present significant difficulties. The authors begin by analyzing the current export control lists to identify areas of overlap, thereby offering a clearer understanding of the sectors that the US considers crucial for national security. By examining control lists, the report assesses quantum computing, AI, semiconductors, biotechnology, and intangible goods to ascertain whether additional controls are required. Furthermore, if such controls are deemed necessary, the report also explores the economic implications and costs associated with implementing them.

The authors argue that the US strategic technology framework faces new challenges in both security and the economy, particularly with the rapidly emerging technologies. They believe that export controls are especially important in the information and communications sector where if the controls are too loose, US adversaries gain technology advantage they could use against the US. If too tight, they hinder high-tech companies of potential revenue needed for innovation. They emphasize that with technological advancements, such as faster ML and smarter supercomputing, the speed of innovation and ability to scale up production is critical. Read the full article on the Center for Strategic and International Studies website.

Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

The Fatty Fish Editorial Team

The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.