- with readers working within the Construction & Engineering industries
- within Law Department Performance and Coronavirus (COVID-19) topic(s)
On January 12, 2026, the U.S. House of Representatives overwhelming passed (369-22) the Remote Access Security Act, modernizing U.S. export controls to address foreign adversaries' remote access to controlled technologies through cloud computing services.
Currently, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) does not consider the provision of cloud computing services to be exports. If passed into law, the bill (H.R. 2683) would modify the Export Control Reform Act of 2018 to authorize BIS to regulate the remote access of items, in addition to the export, reexport, and transfer of items, as well as issue licenses and impose penalties related to remote access of export controlled items.
The bill, sponsored by Rep. Michael Lawler (R-NY-17), directly responds to concerns that Chinese entities have exploited cloud services to evade U.S. export controls on advanced semiconductors and AI technologies by accessing computing power remotely through offshore data centers. It would apply U.S. export control restrictions to remote access and cloud-based exposure of controlled items—including advanced AI chips and semiconductors. In addition, the bill could significantly disrupt cloud computing companies' compliance operations, which have been based on the understanding that the provision of cloud computing power does not qualify as an export for nearly twenty years.
The Remote Access Security Act would not become law until passage in the Senate and signature by the President. Senators David McCormick (R-PA), Ron Wyden (D-OR), Tom Cotton (R-AR), and Chris Coons (D-DE) and the sponsors and cosponsors of the Senate version (S. 3519).
Key Takeaways
- Companies should expect increased regulatory scrutiny of cloud service arrangements involving foreign users, particularly those with potential ties to China. Enhanced due diligence, customer verification, and transaction-level documentation procedures will be necessary for compliance.
- The policy implications of this bill extend beyond traditional hardware manufacturers to cloud service providers, data center operators, and technology platforms offering remote computing capabilities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
