Chairman John Moolenaar has reached out to Secretary of Commerce Gina Raimondo with concerns over the latest export control rule on advanced semiconductor technology to China. In a letter, he expressed apprehension about loopholes that may allow Chinese entities continued access to U.S. technology, potentially due to industry influence over the Bureau of Industry and Security (BIS).

"There is no national security justification for these loopholes," Moolenaar stated in his communication. He urged Raimondo to address these issues swiftly and requested that all related documents be preserved for future review.

The new export control rule includes exceptions allowing certain blacklisted semiconductor manufacturing facilities, or fabs, operated by entities like Huawei and Semiconductor Manufacturing International Corporation (SMIC), to continue receiving U.S. technology. This has raised questions about BIS's approach, which some reports suggest might aid Chinese firms.

Moolenaar pointed out that "the scope, frequency, and brazen nature of these loopholes raise real questions about the culture at BIS." A report from the Center for Strategic and International Studies noted that BIS’s implementation of controls has both helped and hindered Chinese companies.

Specific criticisms were directed at new licensing policies under BIS's "License Exception Restricted Fabrication Facility" strategy. Moolenaar found it perplexing that BIS would employ a fab-by-fab approach when existing methods are already challenged by Chinese circumvention tactics.

Additionally, the letter highlighted potential issues with SMIC using connections like "wafer bridges" between facilities to transfer sensitive U.S. technology despite differing licensing policies at each location.

Moolenaar concluded his letter by reiterating his call for closing these loopholes quickly and preserving all pertinent documents for further investigation during departmental transitions.