BIS Rescinds Biden Administration’s AI Diffusion Export Control Rule

The Bureau of Industry and Security (BIS) announced plans on May 13,2025, to rescind the Biden Administration’s AI diffusion export control rule, which was set to take effect on May 15. BIS will issue a formal rescission notice in the Federal Register and plans to introduce a replacement rule in the future. BIS enforcement officials will not enforce the Biden-era rule.

Additionally, BIS issued new guidance clarifying:

• Use of Huawei Ascend chips violates U.S. export controls (anywhere in the world);
• The penalties for allowing U.S. AI chips to be used in training and inference with Chinese AI models; and
• How U.S. companies can protect supply chains against diversion tactics.