The Defense Department on June 24 released a list of Chinese companies with links to the Chinese military, including Huawei and Hikvision. The list includes 20 companies, most which are already listed on the Commerce Department’s Entity List, that could be subject to additional U.S. sanctions. "As the People’s Republic of China attempts to blur the lines between civil and military sectors, 'knowing your supplier' is critical," a Defense Department spokesperson said in a statement. "We envision this list will be a useful tool for the U.S. Government, companies, investors, academic institutions, and likeminded partners to conduct due diligence with regard to partnerships with these entities, particularly as the list grows." The release of the list comes two months after Commerce issued a rule expanding export licensing restrictions on shipments to military end-users or for military end-uses in China, Russia and Venezuela (see 2004270027).
The Democratic National Committee chairman, and progressive star Sen. Elizabeth Warren, D-Mass., described President Donald Trump's trade war with China as a failed attempt at getting tough on China that hurt Pennsylvania exporters and manufacturers. “China smelled Trump's desperation and played him like a fiddle,” DNC Chairman Tom Perez said on a video conference call with reporters June 24. “He lost the trade war that he started.”
The State Department on June 23 submitted to Congress its unclassified annual report on other countries’ compliance with global arms control, nonproliferation and disarmament agreements. The report contains comprehensive U.S. assessments on global compliance and expands on an April 15 executive summary of the report (see 2004160038).
The State Department approved a potential military sale to Ukraine worth about $600 million, the Defense Security Cooperation Agency said June 17. The sale includes 16 “Mark VI Patrol Boats” and related equipment. The prime contractor is SAFE Boats International in Washington state.
The State Department approved a potential military sale to Canada worth about $862.3 million, the Defense Security Cooperation Agency said June 16. The sale includes 50 “Sidewinder AIM-9X Block II Tactical missiles” and related equipment. The prime contractors are Raytheon, General Dynamics Mission Systems, Boeing and Collins Aerospace.
A U.S. Department of Agriculture Foreign Agricultural Service report on the status of U.S. poultry exports to China urges U.S. exporters to reconnect with Chinese importers and distributors and seek out new contacts now that the country is accepting U.S. poultry imports (see 1911140019). The June 11 report outlines current market conditions, access regulations and market entry recommendations. The Chinese market “has changed considerably” since the U.S. “last had market access in 2015,” USDA said, adding that U.S. exporters should consider working with suppliers to China’s “semi-prepared and frozen food processing segments.” That sector has seen “considerable change … and may offer new opportunities for U.S. exporters,” it said.
SEMI, a global electronics manufacturing and design industry association, applauded a Senate bill introduced last week (see 2006110038) that would provide funding for the U.S. semiconductor industry. The legislation would help U.S. semiconductor research, increase U.S. competitiveness and bolster national security, SEMI said June 12. It would help the U.S. keep up with foreign competitors that benefit from “robust incentives,” SEMI said. “The lack of a federal U.S. incentive [has helped drive] the location of semiconductor manufacturing facilities overseas,” the group said, calling the bill a “significant step forward.” The Semiconductor Industry Association also praised the measure.
The Commerce Department is extending by 30 days, until July 6, the due date for comments on an information collection related to the five-year record retention requirement for export transactions and boycott actions, it said in a notice. Comments were previously due June 5 (see 2004030026).
The State Department renewed the charter for the Defense Trade Advisory Group, the agency said June 8. DTAG, the only State Department advisory board that addresses defense trade topics, will remain active for two more years unless it is terminated sooner, the agency said. The Directorate of Defense Trade Controls issued an updated DTAG members list and presentations from September's DTAG plenary meeting.
The Commerce Department's Bureau of Industry and Security is working with the Department of Defense to survey the industrial base involved with Air Force systems supply chains, BIS said in a June 8 notice. The survey data will provide both agencies with a clearer picture of the “structure and interdependencies” of companies that supply Air Force products, including “maintenance, repair, and overhaul (MRO) related activities,” the notice said. The survey aims to help DoD’s Air Force Sustainment Center better “identify and resolve supply chain deficiencies, foreign dependencies, and other challenges in the industrial base.” The survey will also record “difficulties” faced by suppliers throughout the supply chain, including impacts from the coronavirus.