The Commerce Department is “pushing forward” on increased restrictions of foreign exports to Huawei that contain U.S. content, Secretary Wilbur Ross said during a March 5 Senate hearing. Sen. Chris Van Hollen, D-Md., told Ross he hopes Commerce follows through with the restrictions -- which would include changes to the de minimis rule and the Direct Product Rule (see 2002050047) -- adding that Commerce has been “appropriately aggressive” in pursuing more stringent controls on technology exports to Huawei and China. But Van Hollen noted that Commerce has faced pushback from other parts of the Trump administration, including the Defense and the Treasury Departments (see 2001240012).
A Chinese technology company on the Commerce Department’s Entity List received an exemption from Commerce to buy U.S. goods to counter the coronavirus outbreak, according to a stock filing released Feb. 24. The artificial intelligence company, iFlyTek, which was placed on the Entity List in October (see 1910070076), said it applied for and was granted a “medical material exemption” from Commerce, according to an unofficial translation. The company said the exemption allows it to purchase U.S. medical supplies, along with other goods. A Bureau of Industry and Security spokesperson declined to comment.
The Commerce Department Bureau of Industry and Security will submit a proposal for collection of information to the Office of Management and Budget relating to procedures for parties to request removal from the Entity List or Unverified List, according to a notice published in the Federal Register. Comments are due to the Office of Information and Regulatory Affairs at OIRA_Submission@omb.eop.gov by March 26.
President Donald Trump said he does not want to make it more difficult to export U.S. goods, adding that he has “instructed” his administration to make it easier for countries to do business with the U.S. “The United States cannot, & will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used National Security excuse, that our companies will be forced to leave in order to remain competitive,” Trump said in a series of Feb. 18 tweets. He added that the U.S. wants to sell to “China and other countries” and “We don’t want to make it impossible to do business with us. That will only mean that orders will go to someplace else.”
Discussions within the Commerce Department to expand U.S. export control jurisdiction over foreign exports to Huawei and beyond would have a chilling effect on the U.S. semiconductor industry, said John Neuffer, president of the Semiconductor Industry Association. Neuffer said current U.S. export restrictions on Huawei are already hurting the industry’s ability to sell to China -- which represents about 35% of U.S. semiconductor sales -- and more restrictions would further alienate Chinese customers who are weary of being added to Commerce’s Entity List. “Some of them are afraid they’re next,” Neuffer said during a Feb. 18 panel hosted by the Information Technology and Innovation Foundation.
Sen. Rick Scott, R-Fla., introduced a bill that would achieve a result similar to that of a rule Commerce is reportedly considering on Huawei export controls (see 2002130014), he said in a news release. Currently, goods made outside the U.S. with less than 25 percent U.S. content can be sold to Huawei -- or any other company on the entity list -- without a special license (see 1905220027). The Commerce Department has discussed lowering that de minimis threshold to 10 percent, though it has not yet issued a proposed rule.
The Commerce Department renewed the temporary general license for Huawei and 114 of its non-U.S. affiliates until April 1, Commerce said in a notice. The 45-day extension is the third extension granted to Commerce since it was placed on the Entity List in May (see 1905160072). The previous extension was set to expire on Feb. 16. License applications will continue to be reviewed under a presumption of denial. The notice is scheduled to be published in the Federal Register on Feb. 18.
The Commerce Department renewed the temporary general license for Huawei and 114 of its non-U.S. affiliates until April 1, Commerce said in a notice. The 45-day extension is the third extension granted to Commerce since it was placed on the Entity List in May. The previous extension was set to expire on Feb. 16. License applications will continue to be reviewed under a presumption of denial. The notice is scheduled to publish in the Federal Register on Feb. 18.
The coronavirus outbreak could impact China’s purchase commitments involving U.S. agricultural products under the phase one trade deal, White House national security adviser Robert O’Brien said. The virus could have its biggest impact on the first year of the deal, O’Brien said, which was expected to include $40 billion in U.S. agricultural exports to China (see 2001150073). The virus may also impact what the U.S. Department of Agriculture secretary said would be a “record year” for U.S. agricultural exports (see 2001210031).
The Commerce Department issued a Jan. 15 order temporarily denying export privileges for five people and five companies for involvement in an international procurement scheme to illegally export U.S. items to Pakistan. The scheme, announced in an indictment recently released by the Justice Department (see 2001150040), involved Muhammad Kamran Wali of Pakistan, Muhammad Ahsan Wali and Haji Wali Muhammad Sheikh of Canada, Ashraf Khan Muhammad of Hong Kong and Ahmed Waheed of the United Kingdom. It also involved Business World of Pakistan, Buziness World of Canada, Business World of Hong Kong, Hong Kong-based Industria Hong Kong Ltd. and Pakistan-based Product Engineering. The scheme involved attempts to export items to Pakistan’s Advanced Engineering Research Organization (AERO) and the Pakistan Atomic Energy Commission (PAEC), both of which are on the Entity List. The order denies their export privileges for 180 days from Jan. 15.