Turmoil inside the U.S. Commerce Department’s Bureau of Industry and Security has left thousands of export license applications in limbo, according to people familiar with the matter. The backlog, described by one U.S. official as the worst in more than three decades, affects goods and technology heading to markets worldwide, including China. Industry executives say the paralysis is hurting U.S. competitiveness and putting billions of dollars in orders at risk. Among the most prominent cases are artificial-intelligence chips that Nvidia hoped to ship to Chinese customers after receiving assurances in mid-July that licenses for its H20 processors would be granted. No approvals have yet been issued, the sources said. Current and former officials attribute the delays to leadership upheaval and staffing losses. Since taking office in March, BIS Undersecretary Jeffrey Kessler has tightened controls on staff communications and slowed decision making, while buyouts and resignations have thinned ranks across the bureau. Commerce Secretary Howard Lutnick’s focus on broader trade policy has left key regulatory changes and vacancies unaddressed. The BIS processed 37,943 license applications in fiscal 2023 with an average turnaround of 38 days and a 2 percent denial rate. Exporters now report little clarity on timing, with pending requests ranging from semiconductor equipment to radar systems. Business groups warn that prolonged uncertainty is driving foreign buyers to alternative suppliers and eroding U.S. market share.