The US Bureau of Industry and Security announced new Export Administration Regulations
The US Commerce Department Bureau of Industry and Security (BIS) is concerned about its national security and foreign policy and has made critical changes to the Export Administration Regulations (EAR).
According to a notice in the US Federal Register, advanced integrated circuits (ICs) used in supercomputing, semiconductor manufacturing in ICs, software, and technology in new advanced computing and military defence usage are in the EAR. Exporters need to apply for export permission. The document also listed twenty-eight entities in China that have been identified for national security and foreign policy concerns.
Since the US BIS knows the new rule will have consequences for the supply chain, they also have set two changes to minimize the short term effects on the supply chains. The new rule gives some companies a one-year waiver to produce their products in China.