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Paralyzed Commerce Bureau Faces Longest Export Licensing Backlog in 30 Years

Internal turmoil at the Bureau of Industry and Security has halted AI chip approvals with rule changes still unpublished

Containers sit at the Port of Los Angeles, in San Pedro, California, U.S., July 8, 2025. REUTERS/Daniel Cole/File Photo
An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, U.S., May 13, 2025. REUTERS/Mike Blake/File Photo
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Overview

  • The bureau’s backlog has reached its highest level in over three decades, leaving thousands of export license applications unresolved
  • No licenses have been issued for Nvidia’s H20 AI chip shipments to China despite prior government assurances, putting billions of dollars of orders at risk
  • Undersecretary Jeffrey Kessler’s stringent communication rules and micromanagement have driven experienced staff departures and buyouts
  • Critical export control positions remain vacant, including China-based officers, undermining the bureau’s capacity to process sensitive technology applications
  • Industry groups warn that ongoing delays threaten U.S. competitiveness as foreign buyers seek alternative suppliers