The Department of Commerce’s Bureau of Industry and Security (BIS) has a strategic role in U.S. national security, foreign policy, and economic interest. With a change in administration in 2025, BIS’s role in U.S. policy has come to the spotlight especially when protecting U.S. technology with military applications in AI, semiconductors, quantum computing, and aerospace components. Recent developments have signaled there will be more enforcement actions, i.e., criminal, and administrative, against China, Russia, Iran, and North Korea, with bigger fines for violations. There will be more scrutiny for businesses and/or individuals who are involved with dual use technologies and have touch points with these countries commercially, academically, and/or professionally.
Here are three (3) key developments:
- Disruptive Technology Strike Force – More Enforcement & Bigger Fines
A task force was established on February 16, 2023, comprised of members from the U.S. Department of Justice, BIS, FBI, and Homeland Security. Their focus is to protect U.S. advanced technology from being unlawfully acquired by nation state adversaries. In 2023, the Defense Criminal Investigative Service (DCIS) was added to the task force to strengthen efforts to protect defense industry technology.[1] In 2024, BIS had 15 criminal cases charging sanctions, export control violations and other offenses related to transfers to China, Russia, and Iran.[2]
In late March 2025, BIS held its annual Update Conference[3], and the Secretary of Commerce, Howard Lutnick, expressed that there would be a “dramatic increase” in enforcement and fines against companies violating the Export Administration Regulations (EAR).
2. Export Control is a National Security Priority in the current Administration
Because the U.S. considers its leadership position in technology to be a national security priority especially for AI, export control is considered a high priority for the current Administration and U.S enforcement agencies. China, Russia, and Iran have been labeled by Secretary Lutnick as the “adversary”, and he stressed companies need to be compliant with the EAR and conduct the appropriate due diligence to ensure they are not in violation of the EAR.
3. Criminal enforcement to be focused on National Security, i.e., Export Control
In President Trump’s Executive Order dated May 9, 2025, re: “Fighting Overcriminalization in Federal Regulations” [4] and U.S. Department of Justice’s Memo dated May 12, 2025, re: “Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime”,[5] the current Administration stressed criminal enforcement and/or regulation would continue for national security matters, i.e., violations of export control laws. On March 26, 2025, BIS signed an expanded partnership MOU with Homeland Security Investigations to increase collaboration and leverage additional authorities under the Export Control Reform Act.[6] It appears the U.S. Department of Justice prosecutions and/or resources will continue to place national security matters, i.e. export control, as a matter of priority.
[1] https://www.justice.gov/archives/opa/pr/fact-sheet-disruptive-technology-strike-force-efforts-first-year-prevent-sensitive
[2] https://www.bis.gov/media/documents/bis-export-enforcement-year-review-2024
[3] https://www.bis.gov/update-conference-2025
[4] https://www.whitehouse.gov/presidential-actions/2025/05/fighting-overcriminalization-in-federal-regulations/
[5] https://www.justice.gov/opa/media/1400141/dl?inline
[6] https://www.ice.gov/news/releases/hsi-us-department-commerces-bureau-industry-and-security-sign-new-mou-expand
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