S. 5381: Addressing Dangerous Vulnerabilities in Exports and Research to Strategic Adversaries, Regimes, and Industrial Entities of Security Concern Act

This bill would require the U.S. Department of Commerce to study whether foreign adversaries are able to get around U.S. export controls by using U.S.-based affiliates of restricted companies and by exploiting weaknesses in information and communications technology and services, often called ICTS.

What the review would look at

• Whether U.S.-domiciled affiliates that are at least 50% owned by companies on the Entity List or the Military End User List can still obtain items that their foreign parent companies are barred from accessing under U.S. export controls.
• If so, how much of a loophole that creates and how it affects the overall effectiveness of export controls.
• What national security risks may come from foreign-adversary-controlled ICTS.
• Whether particular sectors of foreign-adversary-controlled ICTS create especially high risks, including by weakening export controls.
• What steps Commerce officials expect to take within the next year to address any problems identified.
• Whether changes to U.S. law are needed to deal with those risks.

Timing and reporting

The review would have to be completed within 90 days after the bill becomes law. Within 30 days after that review is finished, the findings would have to be sent to the House Foreign Affairs Committee and the Senate Banking, Housing, and Urban Affairs Committee.

Practical effect

The bill does not itself impose new restrictions or penalties. Instead, it directs the Commerce Department to investigate potential gaps in export controls and ICTS-related security risks, and to report back to Congress with findings and possible policy recommendations.

Relevant Companies

• None found