US Puts Export Controls on Quantum Computers

The Commerce Department announced export controls on quantum computing technologies alongside new controls for advanced semiconductors and additive manufacturing technologies earlier this month. The controls cover key equipment, materials, and software used in quantum computers as well as complete computers that exceed certain performance specifications.

The department stopped short of requiring licenses for foreign nationals to work with these technologies in the U.S., instead implementing new disclosure requirements for citizens of certain countries. However, it has reserved the right to add license requirements in the future and is seeking input on what effects they would have.

The interim final rule, issued by the department’s Bureau of Industry and Security, requires entities to obtain a license before exporting the specified items, with exceptions for countries that have implemented equivalent controls. “Aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security,” said BIS head Alan Estevez in a press release.

Sharing controlled technology with foreign persons in the U.S. is generally subject to “deemed” export controls, in that the transfer is deemed to still count as an export despite occurring inside the country. However, in recognition of the importance of foreign nationals to the U.S. quantum workforce, the rule permits sharing with foreign nationals working in the U.S., even if they are from countries identified by the government as posing national security concerns or subject to arms embargoes, referred to as D:1 and D:5 countries respectively, such as China, Russia, and Iran.

The rule states that insisting on deemed export licenses for all D:1 and D:5 country nationals would be “devastating to the continued progress of future developments in the quantum field.” It instead requires entities that share controlled quantum technology with foreign nationals from these country groups to keep records of what information they release and to whom.

“Basically, what BIS is doing is sort of keeping the status quo and gathering information about D:1 and D:5 nationals working in quantum in the U.S., almost certainly with an eye to deciding a year or something from now whether that should change,” former senior BIS official Kevin Wolf said in an interview.

The exemption to deemed exports does not apply in all situations, such as cases in which the foreign national in question is employed by a company headquartered in a D:1 or D:5 country. Wolf said these moves represent “a sophisticated approach by the Commerce Department to not harm U.S. and allied companies but not just completely open up a carveout for D:1 and D:5 nationals.”

The quantum controls on exports to certain allies enter into effect on Nov. 5 while the rest of the new controls went into effect the day of the announcement, Sept. 6. The rule includes a request for public comment specifically on the prospect of adding deemed export license requirements for D:1 and D:5 countries, as well as ideas for ways of addressing national security concerns without using deemed export licenses. BIS will accept comments on the new rule through Nov. 5.

Carl Williams, a quantum technology consultant and former NIST scientist, said that aligning U.S. controls with international partners is a positive move but that the new reporting requirements pose a nontrivial burden for startups and other small quantum companies.

“If you look what could have happened, I would say this was good news. If you look and ask whether this actually helps, it’s still a heavy lift, especially for the small companies, the reporting requirements, especially around deemed exports,” Williams said.

“There have been several reports by the U.S. government and others that basically show that half of the quantum-enabled technical workforce… are foreigners in the U.S., and the biggest group is from China,” Williams said. If companies want to keep drawing from that labor pool, they will need to have in-house lawyers or other export control experts, which many small quantum companies do not have, he added.

“The big companies that deal with this, they have the infrastructure in place,” he said. “The small companies, they will have to consult lawyers and get advice and learn how to do it, and then they will have to continually follow requirements... It just doesn’t come cheap to a startup.”

Kate Timmerman, CEO of the Chicago Quantum Exchange, said the industry has anticipated quantum export controls for some time. Now that they are defined, companies can better determine next steps and submit suggestions for improvements, she said.

Furthermore, the rule aims to minimize disruptions to international collaboration, Timmerman said. “They very intentionally focused [the export controls] in a way where it would not actually inhibit R&D going on both within the United States, as well as collaborative research that goes on between U.S. and international researchers,” she said.