Aug 1 - Reuters reports that the US Commerce Department's （BIS ）is mired in chaos, leaving thousands of export license applications stagnant. Some delays are the longest in over 30 years, hitting AI chip sales to China and global markets, frustrating US firms.
BIS faces severe staffing losses, delayed rule updates, limited industry communication, and expert departures, leaving the agency nearly paralyzed.
Notably, NVIDIA's H20 AI chip sales license to China—promised in July and involving billions in orders—remains unissued. The US-China Business Council warns stalled semiconductor equipment licenses let Chinese firms shift to local/other suppliers, risking US market share losses. Licenses for sensor exports to Latin America also face long delays.
Since Jeffrey Kessler took over as BIS undersecretary in March, internal mismanagement has worsened, with slow communication and a wave of senior departures leaving key roles vacant. BIS’s pledged rewrite of AI chip export rules has made no progress, drawing industry doubts.
In FY2023, BIS averaged 38-day reviews with a 2% rejection rate. Ex-officials say delays put US firms at a disadvantage; BIS insists on prioritizing national security. While some licenses to allies are approved, balancing security and export competitiveness remains a huge challenge.
US export control chaos has far-reaching impacts. ICgoodFind monitors its effects on supply chains.
