Reuters reported that two sources revealed that thousands of licenses applied for by US companies to export goods and technology companies around the world (including China) are in a halt because the agency responsible for the review is in internal...
Reuters reported that two sources revealed that thousands of licenses applied for by US companies to export goods and technology companies around the world (including China) are in a halt because the agency responsible for the review is in internal chaos and is almost incurred.
Although U.S. Secretary of Commerce Howard Lutnick has frequently publicly promoted President Trump's tax and trade agreement, sources pointed out that the Bureau of Industry Security (BIS), led by him, has not yet issued the expected new rules, which has blocked communication with the industry, forced to leave or be dismissed, and employees have been lost in large quantities due to their own vocational vocational and diversion.
The report pointed out that the most popular example is that NVIDIA's permission to export AI chips to China has not been passed. The company said on July 14 that the U.S. government has promised to nullify export permits for H20 chips and hopes to ship them as soon as possible. Lutnik and other officials have also proved that the sale will be approved.However, sources pointed out this week that the US has not issued any permission so far, and the order for AI chips involved is worth up to tens of billions of dollars. A U.S. official said the current export permit application pressure is the worst in more than 30 years.
In this regard, a spokesperson for the US Department of Commerce said that BIS will no longer accept all application documents involving major national security concerns. The unit is promoting President Trump's policy process through strong rules and aggressive laws.
The new BIS second-generation lacks communication with the nextBased on the latest data, the BIS annual average review time for each export application in 2023 was 38 days, and a total of 37,943 applications were processed, of which 2% were rejected.
Meghan Harris, a former member of the Trump administration's National Security Council and a former post in the Department of Commerce, said that the export permit system is the foundation of the global economic competition in the United States. Today's delays and uncertainties have made the United States fall into a state of decline on the international stage.
Some employees criticized that Jeffrey Kessler, the deputy BIS leader who took office in March this year, overdosed daily affairs and lacked communication with his subordinates. Shortly after Kesler took office, he asked BIS employees to reduce contact with business representatives and industry insiders in an internal meeting, and required all external meetings to be registered in a balance sheet, two people familiar with the matter said.
Other news pointed out that it is also difficult to get the approval of the Kesler Office. Because of not authorization, public statements were made. The BIS spokesman said that Kesler is rebuilding the bureau's integrity and emphasizing that he has fully won the trust of Lutnik.
Exporting business dissatisfaction increasesThe dissatisfaction in the American industry is rising at present.
Sean, Chairman of the US-China Business Council Stein pointed out that the entire industry has been almost completely stopped, without any notice of whether it will be issued or when it will be issued. These stuck export permit applications include semiconductor manufacturing equipment worth billions of USD. While these permit cases are blocked, Chinese companies are actively contacting and signing cooperation cases with suppliers from local or other countries. "The more we delay, the more market we lose."
Sources emphasized that some permits are still approved, especially cases exported to AIA countries are still under review, and some companies also have channels to communicate with the Ministry of Commerce, especially in handling permit applications.
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