BIS Nominee: Export Controls Must Weigh Both National Security, Economics

Abby Warren, President Donald Trump's nominee to be the Bureau of Industry and Security's assistant secretary for export administration, said July 23 that she would seek to ensure that BIS considers both national security and economic concerns when it develops export controls. Warren testified before the Senate Banking Committee that the Export Control Reform Act of 2018 requires putting export controls in place for significant national security concerns while recognizing the economic impact beforehand. She said BIS has staff constantly monitoring new technology to determine if controls are necessary. Warren made her comments in response to Sen. Catherine Cortez Masto, D-Nev., who expressed concern that the Trump administration's loosening of export controls on advanced chips could allow China to catch up in AI. Warren said her understanding is that BIS has strong controls in place. Sen. Jack Reed, D-R.I., asked Warren to investigate how the Commerce Department allowed Chinese-owned companies to import thousands of advanced U.S. chips for almost a year before closing a loophole with May guidance. Warren replied she is not aware of any such loophole but would review the rules and work with export enforcement if confirmed. Sen. Chris Van Hollen, D-Md., alleged that BIS overrode career employees' national security concerns when easing export controls on AI chip sales to the UAE, citing Trump's financial ties. Warren said she was unaware of such concerns and viewed the rule change as recognizing the UAE's close partnership with the U.S. Sen. Bernie Moreno, R-Ohio, asked Warren to address shortages of plain-old memory chips and ensure domestic demand is met before exporting; Warren replied absolutely. Nominated in April, Warren currently serves as deputy general counsel for AI and technology at Commerce.