WASHINGTON, D.C. – Legislation led by U.S. Representative Greg Stanton (AZ-04) to strengthen oversight of U.S. semiconductor export controls passed the House Foreign Affairs Committee unanimously, today.
The Semiconductor Controls Effectiveness Act, which Representative Stanton introduced with Representative Darrell Issa (CA-48), would direct federal agencies to assess the impact and effectiveness of our export controls on advanced semiconductor technology imposed on the People's Republic of China (PRC) to ensure our trade policies are having their intended effect.
The window to secure America's semiconductor advantage is narrowing. Left unchecked, China could render U.S. and allied export controls irrelevant. As the United States weighs significant changes to our trade policies for the semiconductor industry, the legislation would ensure Congress conducts a thorough review of existing policies and identifies changes needed to bolster enforcement and close diversion loopholes. The assessment would be conducted in direct consultation with the semiconductor industry.
Text of the bill is HERE.
Stanton spoke in committee ahead of the final vote. His remarks as prepared are below. Video is HERE.
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Thank you, Mr. Chairman. If there is one thing this Committee should agree on, it is that the United States must win the economic and security battle with China. Protecting America’s semiconductor advantage is at the center of that battle.
U.S. and allied export controls on advanced semiconductor technologies, imposed beginning in 2022, were designed to constrain China’s AI and high-end chip development. However, since 2022, Beijing’s long-standing drive for semiconductor self-reliance has accelerated, threatening domestic and allied companies and our national security.
The Semiconductor Controls Effectiveness Act, which I introduced alongside my Republican colleague Congressman Issa, requires a comprehensive review of the impact and effectiveness of our semiconductor export controls on the PRC. This legislation aims to strengthen export controls on advanced AI chips and improve congressional oversight to prevent the flow of U.S. technology to competitors.
We need to understand the impact of our current export control regime on the PRC’s military, intelligence, and surveillance capabilities; the PRC’s ability to develop, manufacture, and acquire advanced integrated circuits; and the PRC’s indigenous semiconductor industry, its revenue, and global market share.
We all know the facts: Chinese semiconductor companies are rapidly growing. So, now is the time to conduct a serious assessment of our export control regime to determine whether our current policies are truly effective.
No such assessment can be made without the input of the semiconductor industry itself. Global semiconductor companies have long sold their products to the PRC. Whether we agree with this business decision or not, these companies work directly with Chinese partners and understand first-hand the impact Washington’s policy decisions have on the PRC’s chipmaking advancement.
Notably, the bill also requires the assessment to include recommendations from State, Commerce, and the Director of National Intelligence as to how Congress can refine our existing export control regime, bolster enforcement efforts, and close diversion loopholes. Although this committee is taking action to prevent the PRC from bypassing U.S. export controls, it is critical that our national security agencies, in partnership with the semiconductor industry, provide Congress with recommendations as to what policy changes truly work to achieve the desired effect: constraining China’s AI and high-end chip development.
Thank you, Mr. Chairman, for bringing this important bill up for a vote today. The window to secure America's semiconductor advantage is narrowing. Now is the time for Congress to work together in a bipartisan manner to assess our current export control regime. Our economic and national security is at stake.
Thank you, and I yield back.