US Senators Introduce Legislation to Protect Technology Exports

US Senators Mitt Romney and Maggie Hassan have introduced a bipartisan bill aimed at strengthening the enforcement of technology export controls. The "Export Controls Enforcement Enhancement Act" is intended to strengthen the Export Controls Enforcement Coordination Center, an interagency center responsible for information sharing and coordination among agencies responsible for export controls enforcement, to controls evasion and prevent adversaries, such as China, Russia and Iran, from acquiring sensitive technology developed in the United States. 

Senator Romney says the United States leads the world in technological innovation, but countries such as China, Russia and Iran are constantly trying to acquire sensitive technologies, such as semiconductors and artificial intelligence (AI), in violation of US export controls. "Our legislation would ensure that the interagency Export Controls Enforcement Coordination Center has the resources it needs to effectively lead export controls coordination and enforcement efforts," Mitt Romney.

The Export Controls Enforcement Improvement Act primarily establishes the following provisions:

• Formally establishing and promoting consistent staffing levels for the Export Compliance Coordination Center (E2C2).

• Direct and focused enforcement efforts on issues critical to national security, such as the illegal transshipment and diversion of exports to China, Russia, Iran, and North Korea, and the handling of sensitive technologies involving semiconductors, artificial intelligence, and quantum technology.

• An assessment of the value of increasing the number of law enforcement officers stationed in foreign countries focused on export controls.

• Supporting coordination with the private sector to ensure that US companies are aware of the latest transshipment threats and risks.

This bill, as proposed by representatives from both parties, reflects US concerns with strengthening enforcement of export controls, a priority previously outlined to the Government Accountability Office (GAO) when in January of this year both Romney and Hassan requested an assessment of Commerce Department export controls that restrict the destination of advanced semiconductors, semiconductor manufacturing equipment, and related technologies to China and other adversaries.

"We must prevent our adversaries from improperly acquiring and using United States-developed technology," said Maggie Hassan. "This legislation will strengthen export controls by increasing resources for the detection, investigation, and prevention of potential export violations."

The initiative also responds to the current geopolitical context, where the United States has put extra pressure on China through sanctions and export restrictions to "protect its integrity and technological advances." This has become even more relevant following Russia's invasion of Ukraine, an event after which cyberattack rates doubled according to data from the International Monetary Fund (IMF), raising additional concerns about technological security and the protection of intellectual property.

The bill contemplates US$25 million in FY25 in resources for Export Controls. This initiative is not only intended to address current concerns, but also to lay the groundwork for more effective coordination between the government and the private sector to address emerging threats, highlight the senators.