Plugging the "Gaps" on Transfers of U.S. Sensitive Emerging Technology: New and Permanent Dual-Use Export Control Statutory Authority Becomes Law
Client Alert | 1 min read | 08.16.18
The Export Control Reform Act of 2018, included within the National Defense Authorization Act (NDAA) for Fiscal Year 2019, became law on August 13, 2018, and provides “modern” and permanent statutory authority for the U.S. Export Administration regulations (EAR), which control the export, re-export, and transfer of U.S. origin “dual-use” items. As a result of the effort to strengthen control over foreign investment in the United States (contained in a companion statute within the NDAA), the law directs the Commerce Department to establish an inter-agency process, subject to a public notice and comment period, for the identification of “emerging and foundational technologies” that are essential to the national security of the United States, and requires the imposition of licensing requirements (even if unilateral) at least for transfers of such technologies to U.S. arms embargoed countries, which includes China. With respect to potential technologies likely to incur heightened scrutiny, a Commerce Department industry event in May of this year highlighted U.S. advancements vis-a-vis Europe and China in the areas of artificial intelligence (particularly autonomy, and human-AI interaction), 5G technology, and robotics, among others.
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Client Alert | 8 min read | 10.01.25
On September 29, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) announced a sweeping Interim Final Rule (IFR), (the “Affiliates Rule”) expanding which entities qualify as Entity List or Military End-User entities, thereby subjecting those entities to elevated export control restrictions under the Export Administration Regulations (EAR). U.S. export restrictions applicable to entities on the Entity List, Military End-User (MEU) List, and Specially Designated Nationals and Blocked Persons (SDN List) now apply to foreign affiliates that are, in the aggregate, owned 50% or more by one or more of the aforementioned entities. An entity that becomes subject to these restrictions because of its ownership structure will be subject to the most restrictive controls that attach to any of its parent entities, regardless of ownership stakes.
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