BIS Reaffirms 2023 China Chip License Rule as 2025 AI Pause Leaves Controls Intact
Updated
Updated · The National Law Review · Jun 12
BIS Reaffirms 2023 China Chip License Rule as 2025 AI Pause Leaves Controls Intact
2 articles · Updated · The National Law Review · Jun 12
Summary
May 31 guidance from BIS said exporters still need licenses for advanced computing items sent to entities headquartered in China-linked Country Group D:5 or Macau—even when the recipient is in Singapore, the UAE or Malaysia.
The clarification addresses confusion after BIS's May 2025 non-enforcement policy, which paused only newer AI Diffusion Rule compliance requirements and did not suspend the November 2023 licensing rule.
Covered items include advanced chips, computers and related assemblies under ECCNs such as 3A090 and 4A090, and BIS said exporters must screen not just location but also headquarters and ultimate-parent ownership.
BIS gave a narrow reprieve to bona fide data-center operators already using such items, allowing ongoing use, storage, disposal and servicing for now, while pointing companies to voluntary self-disclosure rules for possible past violations.