# Commerce Department faces criticism from China hardliners over AI chip export controls handling

_Wednesday, July 8, 2026 at 8:00 AM EDT · Power · Latest · Tier 2 — Notable_

China hardliners and former Trump administration officials are criticizing the Commerce Department's handling of AI chip export controls, a July 8 Politico article reports. China hawks in Washington are raising alarms that the Trump administration agency tasked with slowing China's access to advanced U.S. technology is failing at its job. Former officials and China hardliners blame mismanagement at the Commerce Department for growing bottlenecks. They pin the blame on bureau chief Jeffrey Kessler and his boss, Commerce Secretary Howard Lutnick, who they say are mismanaging the agency of more than 400 people. The 12 people were granted anonymity to speak candidly about the bureau's operations. Critics say the agency is increasingly in a state of policy paralysis. As rules stall, licenses pile up and foreign companies that could pose national security risks duck the Commerce Department's blacklist, sensitive technology has more room to flow to China and other adversaries, frustrating China hawks in both parties who say the Bureau of Industry and Security is failing at its mission.

## Sources

- [Politico](https://www.politico.com/news/2026/07/08/trump-ai-tech-chips-exports-00989167)

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Retrieved: 2026-07-08T21:03:00.903Z
Publisher: Tech & Business (techandbusiness.org)