The Bureau of Industry and Security corrected its September revision of the Export Administration Regulations, which implemented export control changes made by the 2018 Wassenaar Arrangement plenary (see 2009100027). The corrections, issued in a notice released Dec. 3, address errors that were “unintentionally introduced” in Export Control Classification Numbers 3A001, 3A002, 3A991, 5A002, 7A005 and 9E003, BIS said. It said the corrections do not change BIS policy or affect licensing requirements.
The Bureau of Industry and Security should apply the “minimal” necessary level of export controls on foundational technologies to prevent impacts on U.S. academic research, universities said in comments to the agency. BIS also should reexamine which technologies it defines as “emerging” because some are already commercially widespread, a British aerospace company said.
The Bureau of Industry and Security is seeking comments on how the Chemical Weapons Convention affected certain U.S. “commercial activities” this year, the agency said in a notice released Nov. 30. BIS plans to use the comments as it prepares its annual certification to Congress on whether CWC regulations on Schedule 1 chemicals harm “legitimate commercial activities and interests of chemical, biotechnology, and pharmaceutical firms.” Comments are due Dec. 31.
The Bureau of Industry and Security expects to roll out a more multilateral approach to export controls under the Joe Biden administration but does not expect any major changes to its China policies or Entity List decisions, a senior Commerce Department official said. The official pointed to the strong bipartisan support among lawmakers for Chinese sanctions and export controls, which likely will continue under a new administration. “I don't see that going away. I think the Hill is engaged. I think at least from what President-elect Biden has announced with his Cabinet, these are folks who are familiar with the national security issues,” the official, who declined to be named in order to speak candidly about BIS, said in an interview last week. “So I don't expect a lot of substantive change.”
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The Commerce Department drafted a rule that would restrict U.S. exports to 89 Chinese and 28 Russian companies with military ties, Reuters reported Nov. 22. The rule, which includes several Chinese aerospace companies such as the Commercial Aircraft Corp. of China Ltd. (COMAC) and the Aviation Industry Corporation of China (AVIC), would build off an April rule that increased license requirements for exports to military end-users and for end-uses in China, Russia and Venezuela, (see 2004270027). The rule contains a list that identifies Chinese and Russian companies that the U.S. considers military end-users, the report said, which require licenses to buy a range of U.S. goods and technologies. If the rule is issued, those licenses will be “more likely to be denied than granted,” Reuters said.
Cordell Hull, who has led the Bureau of Industry and Security for the last year (see 1911180040), will resign next month ahead of the incoming Joe Biden administration. His last day will be Dec. 4, a BIS spokesperson said. “I am proud of what we have achieved on important issues of national security at BIS and I have decided to look for the next challenge in the private sector,” Hull said in a Nov. 19 statement. “I am grateful to Secretary [Wilbur] Ross for giving me this opportunity to serve.”
The U.S. needs to work closer with allies on export controls and foreign investment screening to counter China, a Republican House member and two former Trump administration officials said. They said the U.S.’s current unilateral approach to trade restrictions is not working and could cede U.S. technology leadership to China.
The U.S. and other governments need to substantially increase outreach with industry before continuing to pursue export controls over emerging technologies, experts said. Although the U.S. and other governments do some outreach work, future controls will be ineffective and difficult to comply with without more industry input, they said. “It’s [like] trying to change a tire while we’re driving down the road,” said Scott Jones, a senior adviser at the Strategic Trade Research Institute, speaking during a Nov. 17 webinar hosted by STRI. “Going forward, it fundamentally has to be much more collaborative.’
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