BIS "Truly a National Security Agency"

Export Practitioner published an in-depth interview with Alan Estevez, former Under Secretary of Commerce for Industry and Security, in which he reflected on his career at the Department of Defense and the Bureau of Industry and Security (BIS), discussed the national security rationale behind semiconductor export controls on China, and weighed in on recent developments including the H20 chip decision and the proliferation of Section 232 investigations.

During the interview, Alan discussed the challenges that the BIS Affiliates Rule poses for both companies and the government. He noted that while the rule addresses legitimate concerns about obfuscated ownership structures in China — including cutouts and false front companies — "it's fairly hard for a company to discern that. It's hard for the government to discern that with the resources that the government has available, so it becomes an enforcement nightmare, both for the government and for companies." He added that the rule "takes some nuance out of the equation that sometimes is in the interest of the government."