US export controls achieving no strategic gain but hurting American firms, survey finds

A recent survey conducted by the US-China Business Council reveals that the Trump administration's export-control licensing regime is failing to deliver strategic benefits while imposing significant costs on American firms and eroding their global market share. The survey, which polled 31 companies across technology, industrial and manufacturing, energy, and healthcare sectors, found that lengthy licensing delays are costing the United States billions of dollars in lost exports.

Most pending export licenses are for goods already available in China from Chinese or international suppliers, effectively sidelining American companies for no strategic gain. The most common challenge faced by companies was months-long licensing delays, with 71% of respondents reporting delays in obtaining licenses to export goods to China, exceeding the US Commerce Department's 90-day processing requirement.

Nearly a third of companies had pending applications pending for one to two years. Poorly calibrated export controls are weakening American companies in China, ceding market share to foreign competitors and reducing profits available for research and development. The delays are also eroding confidence in export control agencies, with only 30% of respondents saying the Commerce Department's Bureau of Industry and Security follows established procedures and timelines effectively.

The survey comes amid ongoing trade tensions between the US and China, with both countries imposing new tariffs and expanding export controls and other measures targeting companies.