US export licensing stalls
What happened
Approvals for Nvidia and AMD AI‑chip exports to China are slowing because the Commerce Department's Bureau of Industry and Security has lost roughly 20% of its licensing staff, creating a bureaucratic bottleneck. Tom's Hardware reports that the staffing turnover is hobbling adjudication and delaying export approvals. (tomshardware.com)
Why it matters
U.S. approvals for Nvidia and Advanced Micro Devices artificial intelligence chip exports to China are slowing as the Commerce Department’s export-control office loses staff and reviews pile up. (bloomberg.com) Bloomberg reported on April 10 that the Bureau of Industry and Security lost dozens of experienced employees over the past year, amounting to nearly 20% turnover among rulemaking and licensing staff. People familiar with the agency told Bloomberg that tighter signoff by top officials has stretched approvals for some export licenses into months. (bloomberg.com) The Bureau of Industry and Security is the Commerce Department office that decides whether U.S. companies can ship sensitive technology abroad. Reuters reported on August 1, 2025, that thousands of export applications were stuck in limbo, that one official called the backlog the longest in more than three decades, and that Nvidia’s China-bound H20 chip was the highest-profile case. (usnews.com) This slowdown lands after Washington loosened part of its China chip policy. On January 13, 2026, the Bureau of Industry and Security said it would review license applications for Nvidia H200, Advanced Micro Devices MI325X, and similar chips on a case-by-case basis if exporters met security conditions. (bis.gov) Those conditions require exporters to show the sale will not reduce chip supply for U.S. customers, that the Chinese buyer has compliance procedures, and that the product passed independent U.S. testing for performance and security. The rule took effect immediately upon publication in the Federal Register, with Under Secretary Jeffrey Kessler saying controlled sales could support the U.S. technology ecosystem. (bis.gov) The licensing bottleneck now threatens the practical effect of that policy shift. Bloomberg reported that export backlogs already cover billions of dollars in products, including shipments intended for U.S. allies as well as chip sales tied to Nvidia’s and Advanced Micro Devices’ China business. (bloomberg.com) The fight is bigger than one product cycle. A Congressional Research Service report published in September 2025 said semiconductors are core components for artificial intelligence, industrial systems, and military capabilities, and said U.S. controls since 2018 have aimed both to limit China’s access and to preserve U.S. leadership in advanced chips. (congress.gov) That leaves two pressures colliding inside one office: national-security screening on one side and commercial demand on the other. Reuters quoted a Commerce Department spokesperson in August 2025 saying the Bureau of Industry and Security would “no longer rubber-stamp” applications that raise serious security questions, while former National Security Council official Meghan Harris said delays and unpredictability hurt U.S. competitiveness. (usnews.com) Nvidia’s own filings show why China licenses remain a high-stakes issue even after earlier restrictions. In its annual report for the fiscal year ended January 28, 2024, the company said China accounted for 14% of data center revenue, down from 19% a year earlier, and said it had begun shipping alternative products to that market in small volumes. (sec.gov) For now, the immediate question is less about whether Washington allows some chip sales to China on paper than whether the Bureau of Industry and Security can process the licenses fast enough to make those approvals real. (bloomberg.com)
Key numbers
- Approvals for Nvidia and AMD AI‑chip exports to China are slowing because the Commerce Department's Bureau of Industry and Security has lost roughly 20% of its licensing staff, creating a bureaucratic bottleneck.
- (bloomberg.com) Bloomberg reported on April 10 that the Bureau of Industry and Security lost dozens of experienced employees over the past year, amounting to nearly 20% turnover among rulemaking and licensing staff.
- Reuters reported on August 1, 2025, that thousands of export applications were stuck in limbo, that one official called the backlog the longest in more than three decades, and that Nvidia’s China-bound H20 chip was the highest-profile case.
- On January 13, 2026, the Bureau of Industry and Security said it would review license applications for Nvidia H200, Advanced Micro Devices MI325X, and similar chips on a case-by-case basis if exporters met security conditions.
What happens next
- (bis.gov) Those conditions require exporters to show the sale will not reduce chip supply for U.S.
- The rule took effect immediately upon publication in the Federal Register, with Under Secretary Jeffrey Kessler saying controlled sales could support the U.S.
Quick answers
What happened in US export licensing stalls?
Approvals for Nvidia and AMD AI‑chip exports to China are slowing because the Commerce Department's Bureau of Industry and Security has lost roughly 20% of its licensing staff, creating a bureaucratic bottleneck. Tom's Hardware reports that the staffing turnover is hobbling adjudication and delaying export approvals. (tomshardware.com)
Why does US export licensing stalls matter?
U.S. approvals for Nvidia and Advanced Micro Devices artificial intelligence chip exports to China are slowing as the Commerce Department’s export-control office loses staff and reviews pile up. (bloomberg.com) Bloomberg reported on April 10 that the Bureau of Industry and Security lost dozens of experienced employees over the past year, amounting to nearly 20% turnover among rulemaking and licensing staff. People familiar with the agency told Bloomberg that tighter signoff by top officials has stretched approvals for some export licenses into months. (bloomberg.com) The Bureau of Industry and Security is the Commerce Department office that decides whether U.S. companies can ship sensitive technology abroad. Reuters reported on August 1, 2025, that thousands of export applications were stuck in limbo, that one official called the backlog the longest in more than three decades, and that Nvidia’s China-bound H20 chip was the highest-profile case. (usnews.com) This slowdown lands after Washington loosened part of its China chip policy. On January 13, 2026, the Bureau of Industry and Security said it would review license applications for Nvidia H200, Advanced Micro Devices MI325X, and similar chips on a case-by-case basis if exporters met security conditions. (bis.gov) Those conditions require exporters to show the sale will not reduce chip supply for U.S. customers, that the Chinese buyer has compliance procedures, and that the product passed independent U.S. testing for performance and security. The rule took effect immediately upon publication in the Federal Register, with Under Secretary Jeffrey Kessler saying controlled sales could support the U.S. technology ecosystem. (bis.gov) The licensing bottleneck now threatens the practical effect of that policy shift. Bloomberg reported that export backlogs already cover billions of dollars in products, including shipments intended for U.S. allies as well as chip sales tied to Nvidia’s and Advanced Micro Devices’ China business. (bloomberg.com) The fight is bigger than one product cycle. A Congressional Research Service report published in September 2025 said semiconductors are core components for artificial intelligence, industrial systems, and military capabilities, and said U.S. controls since 2018 have aimed both to limit China’s access and to preserve U.S. leadership in advanced chips. (congress.gov) That leaves two pressures colliding inside one office: national-security screening on one side and commercial demand on the other. Reuters quoted a Commerce Department spokesperson in August 2025 saying the Bureau of Industry and Security would “no longer rubber-stamp” applications that raise serious security questions, while former National Security Council official Meghan Harris said delays and unpredictability hurt U.S. competitiveness. (usnews.com) Nvidia’s own filings show why China licenses remain a high-stakes issue even after earlier restrictions. In its annual report for the fiscal year ended January 28, 2024, the company said China accounted for 14% of data center revenue, down from 19% a year earlier, and said it had begun shipping alternative products to that market in small volumes. (sec.gov) For now, the immediate question is less about whether Washington allows some chip sales to China on paper than whether the Bureau of Industry and Security can process the licenses fast enough to make those approvals real. (bloomberg.com)
