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Washington, D.C. – House Foreign Affairs Committee Lead Republican Michael McCaul released the following statement in response to the Commerce Department’s Bureau of Industry’s (BIS) decision to recharacterize their terminology for the control of emerging and foundational technology. The transfer of this type of so-called “foundational” U.S. technology to a military company of the People’s Republic of China (PRC) is what contributed to Congress, on an overwhelmingly bipartisan basis, updating CFIUS and export controls as part of the FY 2019 National Defense Authorization Act. A critical compromise in the final legislation dropped CFIUS jurisdiction on outbound joint ventures in exchange for BIS identifying and controlling emerging and foundational technology exports to the PRC. Four years later, BIS has identified zero “foundational” technologies.

“The BIS proposed change in terminology from ‘emerging’ and ‘foundational’ technology to ‘1758 technologies’ is a blatant attempt to not live up to their responsibility to follow the 2018 law by identifying foundational technology. Now, instead of rolling up their sleeves, they are trying to recharacterize the issue to obscure oversight. This is unacceptable. It is time for BIS to respect Congress and best protect our national security.”