The Bureau of Industry and Security has prevented more than 100 illegal exports to Russia and Belarus and detained or seized $93 million worth of shipments since Moscow’s invasion of Ukraine in February, the agency said in an Aug. 25 news release. It also said it has expedited license approvals for more than $1 billion in defense equipment and services for Ukraine and has added 335 parties to its Entity List for supporting Russia’s military during that same time period.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Bureau of Industry and Security added seven Chinese entities to its Entity List for acquiring or attempting to acquire U.S. technology to support China’s “military modernization efforts.” All the entities -- which include six research institutes connected to China Electronics Technology Group, one of the country’s largest electronics companies -- will require a license for all items subject to the Export Administration Regulations. BIS will review license applications under a policy of presumption of denial. The additions took effect Aug. 24.
The Bureau of Industry and Security will add seven Chinese entities to its Entity List this week for acquiring or attempting to acquire U.S. technology to aid China’s military. All the entities will require a license for all items subject to the Export Administration Regulations. BIS will review license applications under a policy of presumption of denial. The additions take effect Aug. 24.
Congress should revise export control laws to ensure “naive bureaucrats” don’t prioritize commercial sales over national security, Sen. Marco Rubio, R-Fla., said this week. Rubio, referencing a Wall Street Journal report that said the U.S. approved 94% of license applications for technology exports to China in 2020, said the numbers show that “President Biden refuses to take the threat posed by the Chinese Communist Party seriously" and that “the situation is growing worse."
The Bureau of Industry and Security this week issued a new set of frequently asked questions covering the Entity List, Russia-related export controls and Russia-related sanctions evasion.
Huawei’s revenue fell nearly 6% in the first half of this year compared with the same time last year, the latest sign that U.S. export restrictions are hurting the Chinese company’s operations, The Wall Street Journal reported Aug. 12. The company reported a revenue of 301.6 billion yuan, or about $44.7 billion, the WSJ said, a figure that has been falling since Huawei was added to the Commerce Department’s Entity List in 2020.
A bipartisan group of senators last week urged the Commerce Department to add China’s Yangtze Memory Technologies Company to the Entity List, Reuters reported Aug. 1. In a July 28 letter to Commerce Secretary Gina Raimondo, the senators, including Senate Majority Leader Chuck Schumer, D-N.Y., said YMTC is an “immediate threat” to the U.S. and should be subject to strict export licensing requirements. “By failing to add YMTC to the Entity List, the U.S. Department of Commerce is allowing the PRC to exploit our technological sector and supply sanctioned parties in China,” the letter said, according to the report. A Commerce spokesperson said the agency received the letter and will respond. Spokespeople for the lawmakers didn’t immediately comment. The letter came a little more than a week after members of the Senate Banking Committee urged Bureau of Industry and Security Undersecretary Alan Estevez to add YMTC to the Entity List (see 2207150023).
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The U.S. should shift away from only using export controls as a technology competition strategy against China and instead turn to domestic investment, Ling Chen, a Wilson Center China fellow, said in a July report funded by the think tank. “Weaponizing” supply chains will only “galvanize” China, the report said, causing it to “accelerate” its technological development. “The effect of the tech war may be counterproductive for the United States,” the report said.