Remember the flaps during the Clinton administration about leakage of technology to China? Much ado about very little, IMHO. It's interesting to see that GAO doesn't like the Bush enforcement of limits on export of high capacity CPU's. Where are the right wing fearmongers when you need them?
(I tried to understand the report--I think the bottom line is DOD and Commerce realize the law the Republicans imposed on Clinton is foolish and unrealistic so they took some short cuts. GAO never appreciates short cuts. Without knowing anything about the subject except Moore's law, I'd say the law should just enforce a lag time (1 year lag for China, 10 year lag for North Korea or whatever).