Rep. Kamlager-Dove Criticizes Trump's 'Blatantly Illegal' 15% Fee on Chip Sales to China

Export Controls as a National Security Tool

• 💡 Representative Kamlager-Dove emphasizes that effective export controls should target choke points in the advanced chip supply chain.
• ⚠️ She argues that under the Trump administration, export controls have been transformed from a national security tool into a negotiating tool for personal and political interests.

Trump's Dealmaking Undermines US Interests

• 🎯 The Trump administration's trade war with China has undermined the US export controls regime by using controls as concessions in trade talks.
• 📉 Pausing certain rulings and reducing national security benefits in proportion to economic impact harms US companies and allows Chinese entities to create workarounds.
• ⚡ Linking controls to trade talks has invited unprecedented Chinese retaliation, giving the PRC an excuse to view new regulations as a restart of the tariff war.

Prioritizing Personal Interests Over National Security

• ✈️ The administration previously rescinded an AI diffusion rule to facilitate AI chip sales to the UAE and Saudi Arabia before security agreements were in place.
• 💰 A reported $2 billion investment from the UAE to a crypto company, potentially linked to the president or advisors, raises questions about the driving forces behind US export control policy.

Illegal Fee and Counterproductive Policies

• 🚫 The planned 15% fee on Nvidia and AMD chip sales to China is explicitly outlawed by the Export Controls Reform Act.
• ⚖️ This fee would turn export control licenses into pay-to-play arrangements, allowing the administration to extort US companies and sideline national security.
• 📉 Counterproductive immigration policies, like high fees for H-1B visas, are driving away high-skilled talent needed for the AI race, while China is actively attracting foreign talent.

Call for Investigation and Adherence to Law

• 🔍 Kamlager-Dove introduced an amendment requiring an investigation into an apparent quid pro quo related to chip sales and a bill to prohibit BIS license fees.
• ✅ She stresses the importance of ensuring US export controls advance core national security interests and calls for adherence to the law.