Client Alert: March 19, 2025
U.S. Export Control Policy: The Bureau of Industry and Security (BIS), U.S. Department of Commerce, is holding its annual BIS Update Conference, March 18-20, 2025, in Washington, DC. Representatives of LMD Trade Law are currently present at the conference, including Samuel Finkelstein.
Given the new Trump Administration and the newly confirmed U.S. Secretary of Commerce, keynote speeches by political appointees were notable for where the Trump Administration’s priorities will be with respect to export controls and foreign policy. Unlike past years where Russia was one of the primary subjects at the Update Conference, remarks at this year’s conference have barely mentioned Russia.
Addressing the BIS Update Conference, U.S. Secretary of Commerce Howard Lutnick stated that the Trump Administration plans to “dramatically increase” enforcement and penalties for export control violations, emphasizing that the Administration is particularly focused on unlawful exports of advanced technology to the P.R. of China. Secretary Lutnick cited the DeepSeek AI software as an example of gaps in U.S. export enforcement, as he claimed that DeepSeek was developed using unlawfully exported U.S. semiconductors. Casting the U.S.-China relationship as an existential struggle between freedom and communism, Secretary Lutnick warned that companies and individuals engaged in the unlawful export of advanced U.S. technologies to the P.R. of China will face severe enforcement under the Trump Administration.
Secretary Lutnick also explained that the Trump Administration will seek to incorporate export controls into future trade agreements with U.S. trading partners, in a further attempt to limit China’s access to advanced technologies. In this regard, Secretary Lutnick stated that the U.S. plans to leverage trade agreements as a means of forcing third countries to choose a side between the U.S. and the P.R. of China.
Echoing Secretary Lutnick’s remarks, Deputy Assistant Secretary for Export Enforcement Kevin Kurland alleged that the P.R. of China abuses commercially available technology in furtherance of its Military-Civil Fusion Strategy, which underscores the need for multi- and plurilateral export controls. Mr. Kurland described technology security as critical to President Trump’s America First Trade Policy and stated the Trump Administration views “technology leakage” as one of the greatest threats to U.S. national security.
During a panel discussion with representatives from the European Commission and the governments of Japan and South Korea, Mr. Kurland asked pointed questions about the respective panelists’ plans to strengthen export controls on advanced technology in order to counter the P.R. of China. Mr. Kurland also asked the panelists to describe their governments’ export control efforts with respect to Iran. However, absent from this discussion was the question of export controls on Russia.
While the emphasis of U.S. export controls on China is not new, the comments from Secretary Lutnick and Deputy Assistant Secretary Kurland confirmed that the Trump Administration is focused on using export controls as a means of competing with China and will be punishing violators harshly. Companies involved in advanced technology and semiconductors should expect strict enforcement of existing export controls, stiff penalties, as well as further restrictions, which could be issued unilaterally or in the context of trade agreements between the U.S. and its trading partners. After the completion of the regulatory review of the Outbound Investment Security Program (OISP) by the Trump Administration, expected after April 2, 2025, many expect that investment restrictions will also be further tightened.
Attorney Advertising: These materials were prepared for general informational purposes only based on information available at the time of publication and are not intended as, do not constitute, and should not be relied upon as, legal advice or a legal opinion on any specific facts or circumstances. LMD Trade Law PLLC (and its attorneys and employees) shall not have any liability in connection with any use of these materials. The sharing of these materials does not establish an attorney-client relationship with the recipient and should not be relied upon as an alternative for advice from qualified counsel. Please note that facts and circumstances may vary, and prior results do not guarantee a similar outcome.