A bipartisan Russian sanctions bill that would also target countries still doing certain business with Moscow may hurt Russia in the short term but also could further damage U.S. trade talks with China, said Nicholas Burns, U.S. ambassador to China during the Biden administration. And while Burns said he’s glad the Trump administration has maintained sanctions against Chinese companies for selling sensitive microelectronics to Russia, he said the U.S. likely will never be able to convince China to stop supporting Russia’s defense industrial base.
Banks need more guidance from the Office of Foreign Assets Control to comply with the agency’s new timeline for new sanctions-related recordkeeping requirements, which were extended from five years to 10 years (see 2503190003), the American Bankers Association said.
A grand jury indictment unsealed last week charges two people with trying to pay millions of dollars to ship U.S. export controlled technology and weapons to China, offering in some cases more than double the market rate to buy military jet engines, drones, cryptographic devices and other sensitive technologies.
Taiwan is offering to impose more stringent export controls and investment screening measures to prevent “high-risk countries” from obtaining sensitive semiconductors and other critical technologies, the country’s government told the Bureau of Industry and Security.
At least three companies last week disclosed receiving letters from the Bureau of Industry and Security informing them of new license restrictions they must follow for certain exports to China, including two semiconductor design firms and one oil company.
The recent departure of many career employees at the Bureau of Industry and Security and other government agencies hasn’t necessarily translated into less export control and sanctions enforcement activity, lawyers said last week.
The Bureau of Industry and Security is suspending and revoking existing export licenses for a range of items destined to China, including chip-related design software and civil aviation items, two people familiar with the matter said.
The Bureau of Industry and Security is aiming to roll back a Biden-era interim final rule that increased restrictions on firearms exports, two people familiar with the matter said.
Although adopting a 50% rule for the Entity List could allow U.S. export controls to capture more bad actors, it could also cause unintended business consequences and may make it more challenging for the Bureau of Industry and Security to add companies to the list, said Matthew Axelrod, the agency’s former export enforcement chief.
The Democratic leaders of two key House committees said this week they’re “deeply concerned” about the Bureau of Industry and Security potentially pivoting away from traditional export control dialogues with allies and asked BIS to respond to oversight questions before the end of next week.