Like-minded democracies should establish a global technology alliance to safeguard sensitive technologies and improve export restrictions, technology and trade experts said. The alliance -- which would initially include Australia, Canada, the European Union, France, Germany, Italy, Japan, the Netherlands, South Korea, the United Kingdom and the U.S. -- should act to increase export controls on critical technologies and work to counter China’s illegal technology transfers and operations at international standards-setting bodies.
Berkshire Hathaway will pay $4.1 million after its subsidiary illegally exported more than 140 shipments of cutting tools to Iran, the Office of Foreign Assets Control said in an Oct. 20 notice. Iscar Kesici Takim Ticareti ve Imalati Limited Sirket (Iscar Turkey), Berkshire’s Turkish subsidiary, hid the exports from its parent company, which resulted in more than $350,000 worth of orders going to Iranian end-users. Along with the fine, Berkshire committed to a range of sanctions compliance procedures in a settlement agreement with OFAC and will annually certify for the next five years that it is meeting its compliance obligations.
China enacted a new export control law to restrict sales of national security-related goods, mirroring steps taken by the U.S. to strengthen restrictions on sensitive exports to China. The law, which was passed by the National People’s Congress Standing Committee Oct. 17 and takes effect Dec. 1, creates an export control regime with control lists, compliance requirements for industry and a list of prohibited importers and end-users, somewhat similar to the U.S.’s Entity List.
If elected, Joe Biden will likely continue the U.S.’s strict export control and sanctions policy against China, Venezuela and Russia but may reverse U.S. sanctions against Iran, said Johann Strauss, a trade lawyer with Akin Gump. Biden would also approach trade restrictions more multilaterally as opposed to Trump’s tendency to pursue unilateral restrictions, Strauss said.
The Bureau of Industry and Security is allowing exporters to request a six-month extension for their export licenses, due to the COVID-19 pandemic, BIS said in an Oct. 17 notice. Licenses are eligible for the extension if they expire on or before Dec. 31, BIS said, adding that extensions will be granted in “most cases.” Exporters can apply for the extension by emailing LicenseExtensionRequest@bis.doc.gov and can expect to hear back from BIS within two to three business days.
The White House released a national strategy for critical and emerging technologies that it said will better synchronize agency efforts amid technology competition with China. The strategy builds on export control efforts carried out by the Commerce Department, a senior administration official said, and will allow government offices to better align their strategies as the U.S. restricts Chinese access to sensitive U.S. technologies.
The U.S. needs a “technology-specific” trade policy as it pursues export controls over emerging technologies to limit impacts on industry, the Strategic Trade Research Institute and the University of Maryland Center for International and Security Studies said in a report released Oct. 13. The report analyzes three categories of items that it calls “chokepoint technologies” -- position, navigation and timing (PNT), quantum computing, and computer vision -- and examines the feasibility of trade controls on each category. The report stresses that while some items, including PNT technologies, can be controlled, others, such as computer vision technologies, are widely commercially available and should not be restricted.
The Treasury Department issued updated guidance on Hong Kong-related sanctions and the State Department issued a report to Congress under the Hong Kong Autonomy Act, the agencies said Oct. 14.
The House Foreign Affairs Committee is reviewing new export controls on items related to semiconductors, potentially including design elements and software, said Rep. Michael McCaul, R-Texas. McCaul said some U.S. export restrictions may need to be strengthened to address continuing Chinese attempts to steal U.S. technologies.
The Bureau of Industry and Security should be careful not to place overly broad, unilateral export restrictions on items for crowd control reasons if the controls disproportionately hurt U.S. competitiveness, industry told BIS in comments released this month. But some commenters, including a human rights advocacy group and a Congress member, called for new export restrictions and suggested existing controls -- especially on technologies that contribute to Chinese human rights abuses -- should be tightened.