Paralysis at Export Bureau Threatens U.S. Trade and Tech Edge

Thousands of U.S. companies' license applications for exporting goods and technology, especially to China, are stalled due to turmoil at the agency responsible for approvals. The Bureau of Industry and Security under the Commerce Department faces accusations of mismanagement, leading to costly delays and uncertainty in the export sector.

The U.S. export license approval process is in disarray, with thousands of applications delayed, including high-profile shipments of AI chips from Nvidia to China. This paralysis within the Bureau of Industry and Security, under Commerce Secretary Howard Lutnick, is causing significant disruptions and uncertainty in the trade sector.

The stalemate has resulted in a backlog of applications, the longest in over three decades, with industry representatives expressing frustration. Critics argue that the hesitancy in granting licenses is crippling American competitiveness, especially at a time when Chinese companies pursue alternative supply relationships.

Internal criticism is also mounting against BIS Undersecretary Jeffrey Kessler for ineffective leadership. The lack of communication and transparency about policy directions and regulatory changes are leaving businesses in limbo, risking billions of dollars and potential losses in market share worldwide.

(With inputs from agencies.)