United States: BIS strengthens export controls on advanced chips to China

The Bureau of Industry and Security at the U.S. Department of Commerce has issued a final rule revising its licensing policy for certain advanced semiconductors exported to China and Macau. This update is part of the broader U.S. strategy to tighten technology export controls and limit China’s access to sensitive technologies.

The revised framework introduces a case-by-case review process for license applications, while maintaining a general presumption of denial. In practice, this means that exports remain highly restricted, with only a limited number of transactions potentially eligible for authorization under strict conditions.

The rule provides for limited flexibility regarding certain semiconductors that fall below defined technical thresholds. In such cases, exporters may apply for licenses, provided they can demonstrate a strong ability to manage export-related risks.

U.S. authorities are placing particular emphasis on compliance requirements. Exporters are expected to implement enhanced due diligence measures, including robust know-your-customer procedures, diversion risk mitigation mechanisms, and strict end-use controls. These requirements reflect a clear intent to secure the entire export chain.

Despite these adjustments, the overall framework remains highly restrictive, especially when dealing with high-risk end users. This approach confirms the U.S. government’s ongoing commitment to closely regulate advanced technology flows to China.

In this context, technology companies must adapt their compliance frameworks and integrate these requirements into their operational processes. Managing exports of advanced technologies is becoming a strategic priority, requiring increased vigilance and the ability to respond quickly to regulatory changes.