Trump administration puts final touches to rules limiting sensitive tech exports to rivals

First batch of rules expected to touch involve just a few technologies, such as quantum computing and AI

President Trump's administration is drafting a set of rules to limit exports of sensitive technology to rival countries.

According to Reuters, the Commerce Department is finalising five rules intended to prevent adversaries, particularly China and Russia, from accessing US-developed technologies in fields such as advanced 3D printing, quantum computing and artificial intelligence.

Last year, the Commerce Department invited comments from industry experts on the sectors that should be covered under the new regulation. The exercise worried many businesses at that time, who feared that the US government could introduce broad regulations preventing various sectors from exports their products to key customers aboard.

The rules appear to be narrowly tailored to address specific national security issues

The documents seen by Reuters, however, suggest that the first batch of rules being drafted by the Commerce Department will touch just a few technologies. Moreover, those rules will also be submitted to various international bodies for approval so that they are also implemented in allied countries, not just in the US. The move is intended to establish a level playing field for US companies abroad.

"Based on their titles, the rules appear to be narrowly tailored to address specific national security issues, which should go a long way to calming the nerves of those in industry concerned that the administration would impose controls over broad categories of widely available technologies," Kevin Wolf, former assistant secretary of commerce for export administration, told Reuters.

Two new regulations, which were sent to the Office of Policy and Strategic Planning on 19th November, would impose restrictions on exports of 3D printing of explosives and quantum diluted refrigerators, used in some quantum computers.

The Commerce Department is also seeking comments from other agencies on a rule that would regulate exports of "Gate-All-Around Field Effect transistor technology" used to manufacture semiconductors.

Two other rules would limit the export of chemicals used to make single-use chambers for chemical reactions and Russian nerve agent Novichok.

The implementation of these rules is unlikely to go into effect before mid-2021. The US government is currently scrutinizing relations between US and Chinese firms in the technology sector over national security concerns.

Last year, the Commerce Department slapped Chinese company ZTE with seven-year sales ban after it was found to be violating a deal over its circumvention of the Iranian trade embargo.

The ban barred the US companies from trading with ZTE, and included the supply of components that ZTE needed in order to make its smartphones and networking equipment.

That ban came hot on the heels of an official warning from the UK's National Cyber Security Centre (NCSC). "The use of ZTE equipment or services within existing telecommunications infrastructure would present risk to UK national security that could not be mitigated effectively or practicably," NCSC technical director Ian Levy warned.

In May, President Trump signed an executive order banning US telecoms operators from buying or using equipment from companies "owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries" - an order that was primarily aimed at Chinese telecoms equipment makers Huawei and, to a lesser extent, ZTE.