Making America's economy stronger has been a top priority for President Trump in his second term. But two of the major tools his administration uses to protect economic security have run into snags. The Trump administration has leaned heavily on export controls on potentially sensitive technology products and tariffs as part of their global economic strategy.
However, neither tool has been working as planned. The U.S. has an advanced export control regime that screens and sometimes blocks foreign countries from buying American products with a potential military use or which contain technology the U.S. is competing with other countries on. Sean Stein, head of the US China Business Council, is quick to praise those tools in concept.
"Export controls are really important," he said in an interview. "Export controls are a national security measure that are sort of a check on what we trade." But the American companies he represents —from pharmaceuticals to manufacturing —are frustrated with how they are working in practice. The controls are enforced by a government department called the Bureau of Industry and Security, or BIS.
Stein says the agency has been slow walking the export licenses needed by business to sell some of their products internationally. "We've got cases that are waiting for more than a year," Stein said. Normally, getting a license to export sensitive goods should not exceed 90 days, according to BIS' own policies.
But an August survey conducted by the organization Stein represents found that of 31 American firms selling to China, 95 percent of companies said they are facing license delays. That delay has resulted in lost sales, with American firms often losing out to Chinese competitors selling similar products or services. "What we've seen in the survey is not, you know, millions of dollars of business, but billions of dollars of business that have been lost," Stein said.
Kate Koren, deputy head of the economics program at the Center for Strategic and International Studies in Washington, blames the lag on incoherent policy that began after China's leader Xi Jinping and President Trump met in South Korea last October. For example, the Trump administration suddenly rolled back more stringent export controls after the South Korea meeting. Earlier, it also reversed a decision and allowed American semiconductor company Nvidia to sell advanced chips to China.
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