The White House has announced a new Export Control Framework for AI Diffusion, which introduces country-specific caps and a licensing regime for the export of advanced semiconductors from the United States. These semiconductors are crucial for developing artificial intelligence technologies. The rule is set to begin implementation within 120 days and will impact U.S. companies' ability to deploy these advanced chips in data centers abroad.
In December, the Computer & Communications Industry Association (CCIA), along with four other trade associations, expressed concerns about the rule's content and expedited introduction in a letter to the Biden administration. They argued that by limiting the sale and deployment of advanced chips to most countries, including key partners, and imposing strict requirements on U.S. cloud service providers and data centers, the rule could hinder U.S. firms' global competitiveness while potentially benefiting competitors it aims to constrain.
The CCIA warned that industries dependent on rapidly advancing AI services—such as drug development, search engines, entertainment, gaming, and other cloud services—could face widespread repercussions due to this framework.
Jonathan McHale, Vice President for Digital Trade at CCIA, commented: “Exports of advanced technologies, particularly to adversary nations, raise legitimate national security issues. But this novel effort to broadly reshape the development of technology and services affects products and services widely used among many allies and partners, undermining a key source of U.S. competitiveness."
McHale further criticized the process behind developing this interim final rule: “This complex and highly-prescriptive interim final rule was developed without any formal notice and comment procedures with outside stakeholders... Rushing out a consequential rule in the final week of an administration without that transparency does a disservice to both policymaking and affected stakeholders." He urged the incoming administration to review both "the substance and process" of this decision carefully.
CCIA has been involved in balancing trade and export control issues for over five decades.
