US and International Partners Implement New Controls on Four Major Categories of Advanced Technologies

Last Thursday, September 5, the United States announced new control measures for advanced technologies, including quantum computing, to align with restrictions already imposed by international partners.

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued an Interim Final Rule (IFR) on Thursday to impose controls on key and emerging technologies with which broad technology agreements have been reached with international partners. This IFR covers controls related to quantum computing, semiconductor manufacturing, and other advanced technologies.

“This action today strengthens our international relationships with like-minded countries and ensures that U.S. export controls keep pace with rapidly advancing technologies, which, if in the wrong hands, could pose a serious threat to our national security,” the BIS stated in a press release.

Several countries, including the United Kingdom, have already implemented similar controls, and other countries are expected to follow suit.

Alan Estevez, Deputy Secretary of the U.S. Department of Commerce’s Bureau of Industry and Security, stated in the press release that today’s action enhances U.S. cooperation with international partners, making it more effective when collaborating, “coordinating our control of quantum and other advanced technologies to make it more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security.”

BIS stated that as critical technologies with military applications continue to emerge and develop, there is an increasing need to regulate the flow of these technologies to ensure that these items are not used for purposes that violate U.S. national security or foreign policy objectives.

In this IFR, BIS is implementing global export controls on specific types of items, including:

Quantum computing equipment and technology: quantum computers, related equipment, components, materials, software, and technologies used for developing and maintaining quantum computers.

Advanced semiconductor manufacturing equipment: tools and machinery necessary for producing advanced semiconductor equipment.

Gate-All-Around Field-Effect Transistor (GAAFET) technology: technology for producing or developing high-performance computing chips for supercomputers.

Additive Manufacturing (AM) projects: equipment, components, related technologies, and software used in producing metal or metal-alloy parts.

Washington trade lawyer Kevin Wolf told Reuters, “The most important control is on quantum computing and related technologies,” indicating that the U.S. government has new reporting requirements for foreign nationals engaged in quantum computing development in the U.S.

Wolf also noted that the GAAFET control does not apply to broader integrated circuit designs but is specific to production utilizing the GAAFET architecture.

GAAFET is an advanced chip architecture that helps improve chip performance and reduce power consumption.

Celia Merzbacher, Executive Director of the Quantum Economic Development Consortium (QED-C), told Reuters that the U.S. is attempting to strike a balance regarding labor regulations, but even just the reporting requirement for foreign employees could impact hiring decisions.

She expressed concern that small companies may choose to only hire U.S. citizens to avoid dealing with reporting requirements and suggested that this could result in the loss of valuable talent.

A 2022 Rand Corporation assessment found that the U.S. leads in most quantum technologies around the world and is at or near the global forefront in every application area.

Senior Chinese officials view quantum technology as a strategic priority, with one of the key objectives of China’s 14th Five-Year Plan being quantum science and technology. Chinese quantum experts and the Chinese government assess that China lags behind the U.S. in many quantum areas but aim to surpass the U.S. by the mid-2020s. Although China is unlikely to overtake the U.S. and Europe to become a leader in foundational research and development based on current trajectories, it may make some progress in developing and deploying early quantum computing applications.

In 2022, the Biden administration began prohibiting U.S. companies from selling high-end chips for supercomputers, artificial intelligence, and data centers to China.

White House National Security Advisor Jake Sullivan stated in September 2022 that “computational-related technologies, biotechnology, and clean technologies are true force multipliers,” emphasizing that the U.S. will impose export controls to lead ahead of the Chinese.

The Hefei National Laboratory for Quantum Information Science, a laboratory focused on quantum technology supported by the Chinese authorities, started sending many young students abroad to study from 2006, and by 2011, these students had mostly returned to China.

A 2022 Rand Corporation report indicated that some U.S. quantum technology research has been completed in collaboration with Chinese scholars, particularly those at Chinese military universities, raising the risk of technology leakage.

On June 21, the U.S. Treasury Department issued a proposed notice aimed at further restricting U.S. individuals and companies from investing in China, targeting to curb Chinese access to U.S. funds for semiconductor, quantum information, and artificial intelligence developments.

Similarly, the U.S. has placed numerous restrictions on the sale of advanced semiconductors and chip manufacturing tools to China. Commerce Secretary Gina Raimondo has stated multiple times that the U.S. will consider expanding these measures as needed to prevent Beijing from gaining access to cutting-edge artificial intelligence technology, as the U.S. is concerned this could provide an advantage to the Chinese military.

The U.S. government is also urging the Netherlands, Germany, South Korea, and Japan to further tighten restrictions on China’s access to semiconductor technology. Following the U.S., the UK has imposed restrictions on sensitive technology exports to China as well. In March this year, the UK implemented controls on integrated circuit technology with GAAFET structures.