A multinational semiconductor company may have violated U.S. export controls when it transacted with two Chinese technology companies on the Entity List, according to its October Securities and Exchange Commission filing. Arteris, which is headquartered in California, said it maintained a business “relationship” with HiSilicon Technologies Co. and Chongxin Bada Technology Development Co., Ltd., which may have resulted in “inadvertent” violations of the Export Administration Regulations. The Bureau of Industry and Security added HiSilicon to the Entity List in 2019 as an affiliate of Huawei (see 1905160072) and added Bada in 2020 (see 2008260038).
A new bill with bipartisan support would authorize more U.S. sanctions against those responsible for the military coup and subsequent human rights abuses in Myanmar. The Burma Unified through Rigorous Military Accountability Act of 2021 also would require the State Department to designate an official to coordinate U.S. sanctions against Myanmar and push for more multilateral sanctions among allies.
The export control jurisdiction for exports of deuterium for non-nuclear end-uses will transfer from the Nuclear Regulatory Commission to the Bureau of Industry and Security, BIS said in notice. While those exports will be controlled under the Export Administration Regulations, BIS stressed that deuterium exports intended for nuclear end-uses will still be subject to the NRC’s export licensing jurisdiction. BIS has been considering the change, which will take effect Dec. 6, since at least June (see 2109240011).
The Biden administration plans to revisit its phase one trade deal with China and will continue closely scrutinizing Chinese investments that seek to acquire sensitive U.S. technologies, senior officials said this week. The officials, speaking about the U.S.’s monthslong review of its China trade relationship, said China hasn’t met its phase one purchase commitments and stressed that all of its trade tools “are on the table” as they look to enforce the deal.
The Bureau of Industry and Security fined a Texas semiconductor component manufacturer nearly $500,000 for illegally exporting controlled wafers to Russia via Bulgaria (see 2012210013), the agency said in a Sept. 28 order. The company, Silicon Space Technology Corporation, which began doing business as Vorago Technologies in 2015, worked with a Russian engineering firm to export “rad-hard 16MB Static Random-Access Memory (SRAM) wafers,” which were controlled under the Export Administration Regulations for spacecraft and related components.
The U.S. plans to prioritize discussions on export controls and investment screening tools during the first meeting of the U.S.-European Union Trade and Technology Council this week (see 2109130025), senior administration officials said. The two sides plan to release a set of shared trade and technology commitments after the Sept. 29 meeting in Pittsburgh, which should hint at closer collaboration on various trade restrictions, one official said, particularly involving semiconductors.
Rep. Michael McCaul, R-Texas, recently offered several amendments to the 2022 National Defense Authorization Act, including provisions relating to export control statistics, the Entity List and sanctions.
Several U.S. national security agencies are split on whether to add Chinese smartphone maker Honor Device to the Entity List, The Washington Post reported Sept. 19. While the Commerce and State departments said Honor shouldn't be added to the list, the Defense and Energy departments last week supported adding the company. Federal Communications Commissioner Brendan Carr said Honor should be blacklisted because Huawei, which formerly owned Honor as its smartphone company, is using it to evade U.S. export restrictions. “This isn't a close call,” Carr said in a Sept. 20 tweet. The issue has been “appealed to the political-appointee level” at each of the agencies, the report said, and could be escalated to the Cabinet level and eventually President Joe Biden in the case of a deadlock.
Two nominees to lead the Bureau of Industry and Security said they will prioritize stopping illegal technology exports to China and are willing to bypass multilateral controls on certain sensitive technologies if unilateral restrictions are warranted. But Alan Estevez, President Joe Biden’s nominee for BIS undersecretary, and Thea Kendler, the nominee for assistant secretary for export administration, also stressed that export control cooperation with allies is crucial and committed to working to convince trade partners to adopt more controls.
An investment and research firm expects the Bureau of Industry and Security to issue several proposed rules for export controls related to semiconductors this fall and said BIS is considering other restrictions on certain Chinese technology companies. In a Sept. 17 report, the Cowen Washington Research Group said BIS is “likely” to soon issue several notices of proposed rulemaking to request industry comment on new controls for semiconductor capital equipment, mostly so the U.S. is prepared with new proposals for the next Wassenaar Arrangement cycle.