The Bureau of Industry and Security added 37 entities to the Entity List, including 34 Chinese research institutes and technology companies, for supporting China’s military modernization efforts or Iran’s weapons program. Other entities added to the list, located in Georgia, Malaysia and Turkey, supplied U.S.-origin items to Iranian defense industries, BIS said.
A group of Senate and House Democrats called on the Biden administration to designate more spyware technology companies for human rights abuses, saying the designations will complement existing export restrictions meant to curb their sales of surveillance technologies to authoritarian governments. In a Dec. 15 letter to the Treasury and the State Department, the lawmakers said the U.S. should specifically impose Global Magnitsky sanctions against United Arab Emirates-based DarkMatter (see 2110220033), Israel-based NSO Group and European companies Nexa Technologies and Trovicor. The sanctions should target the companies as well as their CEOs and other senior executives, the letter said, adding that they all have sold surveillance technologies and services to help governments commit human rights violations.
The Biden administration plans to place eight additional Chinese companies on its investment blacklist on Dec. 16, including DJI, the world’s largest drone maker, the Financial Times reported this week. The Treasury Department will add the companies to its Chinese military-industrial complex companies list for their alleged ties to surveillance efforts and human rights abuses of Muslim minorities in China’s Xinjiang region, the report said.
The Bureau of Industry and Security will add 37 entities to the Entity List this week for supporting China’s military modernization efforts or Iran’s weapons program and defense industries. The entities, located in China, Georgia, Malaysia and Turkey, will be subject to a license review policy of presumption of denial for all items subject to the Export Administration Regulations. No license exceptions will be available for the entities, BIS also added three additional aliases under Huawei’s Entity List entry. The additions take effect Dec. 17.
The U.S.’s new multilateral export control initiative includes a written “code of conduct” for licensing decisions for sensitive exports and new partnerships with allies to better control emerging technologies. The U.S. effort, previewed earlier this week ahead of the virtual democracy summit (see 2112090030), was officially announced Dec. 10 alongside Australia, Denmark and Norway, and includes support from other trading partners, including Canada, France, the Netherlands and the United Kingdom.
The Office of Foreign Assets Control imposed investment restrictions on SenseTime Group Ltd., a major Chinese technology company, and sanctioned 15 people and 10 other companies for human rights abuses, the agency said Dec. 10. SenseTime, which had prepared to price shares Dec. 10 in its initial public offering in Hong Kong, will now be subject to a U.S. investment ban and added to OFAC’s list of companies with ties to China’s military (see 2106030067).
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The European Union should impose sanctions and export restrictions on Israel-based NSO Group over accusations that the company provided spyware to hack human rights activists and journalists, more than 80 human rights groups and other activists wrote to the EU. In a Dec. 3 letter, the groups said NSO Group’s Pegasus Spyware was reportedly used to hack the devices of Palestinian human rights activists, “further evidence of a pattern of human rights abuses facilitated by NSO Group through spyware sales to governments that use the technology to persecute civil society and social movements in many countries around the world.” The groups, including Amnesty International and Human Rights Watch, pointed to the U.S. Commerce Department’s November decision to add NSO Group to the Entity List (see 2111030010). “The EU should follow suit and urgently put NSO on its global sanction list and take all appropriate action to prohibit the sale, transfer, export, import and use of NSO Group technologies, as well as the provision of services that support NSO Group's products until adequate human rights safeguards are in place,” said the letter, which was addressed to EU member states and Josep Borrell, the EU’s foreign policy chief. The NSO Group didn’t immediately comment.
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The U.S. has “repeatedly stretched the national security concept and abused state power to hobble Chinese companies,” a Chinese Foreign Affairs Ministry spokesperson said last week. The Commerce Department’s Bureau of Industry and Security on Nov. 26 added 27 foreign organizations and individuals to its Entity List, including eight technology entities based in China, to prevent U.S. emerging technologies from being used for Beijing’s “quantum computing efforts that support military applications" (see 2111240014). The BIS action “severely hurts the interests of Chinese companies, recklessly undermines the international trade order and free trade rules, and gravely threatens global industrial and supply chains,” the ministry spokesperson said. “China reserves the right to take necessary countermeasures,” he said. “We will firmly defend Chinese companies’ legitimate rights and interests with all necessary measures.”