The Defense Department on Jan. 14 released another list of Chinese companies with ties to the country’s military. The latest tranche includes nine companies, including businesses operating in the semiconductor, technology and aviation sectors. The companies will be subject to certain investment bans under an executive order President Donald Trump issued in November (see 2011130026). The latest list follows the release of several similar lists last year (see 2008300001, 2006250024 and 2012040008).
Congress and the incoming administration should strengthen and maintain a range of export controls and sanctions to prevent China from acquiring sensitive U.S. technologies and items used for repression, the Congressional-Executive Commission on China said in its 2020 annual report. The report and an executive summary, issued Jan. 14, urge the U.S. to continue to dedicate resources to restrict exports to China in order to prevent human rights violations.
The Bureau of Industry and Security is experiencing significant delays to its Huawei licensing decisions due to telework rules and the COVID-19 pandemic, a BIS official said. Communication between agencies has been hampered, the official said, leading to lengthy license adjudications and a backlog of applications.
The Bureau of Industry and Security added one Chinese entity to its Entity List, another to its Military End User List and removed two Russian entities from the MEU List, the agency said in a final rule. BIS added China National Offshore Oil Corporation Ltd. (CNOOC) to its Entity List for its involvement with China’s militarization of the South China Sea and designated Beijing Skyrizon Aviation Industry Investment Co., Ltd. because of its ties to China’s military. The changes are effective Jan. 14.
The Bureau of Industry and Security announced new controls on technologies and activities that may be supporting foreign military-intelligence end-uses and end-users in China, Cuba, Russia, Venezuela and other “terrorist-supporting” countries. The agency also will bolster controls to prevent U.S. people from supporting weapons programs, weapons delivery systems and weapons production facilities, BIS said in an interim final rule issued Jan. 15. The changes take effect March 16. Comments are due March 1.
The Bureau of Industry and Security removed certain license restrictions for Sudan (see 2012080003) to reflect the U.S. decision to rescind Sudan’s designation as a state sponsor of terrorism (see 2012170015). The final rule, effective Jan. 14, will amend the Export Administration Regulations by removing anti-terrorism controls on exports to Sudan and by removing Sudan from Country Group E:1, which makes the country eligible for a 25% de minimis level, BIS said. Sudan also was added to Country Group B and will be eligible for several new license exceptions.
The Joe Biden administration is expected to cooperate more with allies to counter China and more closely coordinate on trade deals and restrictions, officials from the European Union and Australia said. While the EU wants to work with the new administration to take a more multilateral approach toward strategic competition with China, Australia plans to lobby Biden trade officials to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The United Kingdom and Canada announced a range of measures to restrict trade with China’s Xinjiang region over allegations of human rights violations committed against Uighurs and other ethnic minorities. The measures include export controls, restrictions on certain imports produced by forced labor in the region and penalties for companies that violate the measures. Both countries also issued business advisories for companies operating in the region, warning them about compliance risks and exposure to penalties.
The Bureau of Industry and Security loosened its license review policy for exports of certain drones controlled under the Export Administration Regulations (see 2012150011). The move, following a similar announcement by the State Department in July (see 2007270035), will impose a case-by-case license review policy on certain unmanned aerial systems (UAS) as opposed to a review policy of presumption of denial. The change will impact drones controlled for missile technology (MT) reasons and that have a “range and payload capability equal to or greater than 300 kilometers/500 kilograms” and a “maximum true airspeed of less than 800 km/hour,” BIS said in a final rule. The agency said the case-by-case review policy will also apply to MT-controlled items for the design, development, production or use in such drones. The changes take effect Jan. 12.
The U.S. needs to boost its manufacturing capabilities, invest in innovation and improve its ability to export goods around the world, the President-elect Joe Biden’s two top Commerce Department nominees said. The nominees, Gina Raimondo as Commerce secretary and Don Graves as Commerce deputy secretary, were announced Jan. 8 by Biden, who urged the Senate to swiftly confirm their nominations.