A district court judge in Massachusetts sentenced Chinese national Shuren Qin to two years in prison for exporting hydrophones with anti-submarine applications to a Chinese military university on the Commerce Department's Entity List, in a Sept. 1 sentencing memorandum. Judge Denise Casper carried out the sentencing and also ruled that Qin will be placed on supervised release for two years following his prison sentence and will pay a fine of $20,000 (United States v. Shuren Qin, D.C. Mass. #18-10205).
U.S. penalties for illegal exports to China have risen dramatically this year compared with last, with about $6 million in fines handed out already, said Jeremy Pelter, the acting undersecretary for the Bureau of Industry and Security. Pelter told a bipartisan congressional commission this week that the agency during the 2021 fiscal year has issued about $1.86 million in criminal fines and more than $4 million in civil fines, skyrocketing past 2020’s penalties, which totaled about $60,000.
The Commerce Department's Bureau of Industry and Security is willing to consider ways to accelerate its emerging and foundational technology control effort but won't abandon its multilateral efforts just to publish controls more quickly, a top official told a bipartisan congressional commission on China Wednesday. Acting BIS Undersecretary Jeremy Pelter acknowledged criticism that the agency is moving too slowly on the congressionally mandated export control effort but defended the work BIS has done so far and said the agency doesn’t plan to change course.
China’s Semiconductor Manufacturing International Corp., which was placed on the Commerce Department’s Entity List last year, plans to build a nearly $9 billion chip production facility in Shanghai to help bolster China’s semiconductor ambitions, the Wall Street Journal reported Sept. 3. The facility will be built through a joint venture between SMIC and the Shanghai government, and will specialize in “mature technologies of 28-nanometer process nodes and higher and churn out 100,000 12-inch wafers a month when complete,” the report said, citing a SMIC regulatory filing. SMIC, which is also on an unclassified Defense Department list of Chinese military companies (see 2106280023), has come under intense scrutiny from some lawmakers, who view it as a threat to U.S. semiconductor leadership (see 2103190005).
Two members of an open radio access network alliance have halted activities over concerns about possible ramifications of the U.S. decision to place three Chinese alliance members on the Commerce Department's Entity List. Ericsson and Nokia responded that they remain committed to the project. Resolving the issue could require the O-RAN Alliance to throw out its Chinese members or receive a U.S exception.
The Commerce Department should investigate the potentially unfair pricing activities of a Chinese drone company that was recently placed on the Entity List, two lawmakers said in an Aug. 31 letter to Secretary Gina Raimondo. Reps. Jan Schakowsky, D-Ill., and Gus Bilirakis, R-Fla., said Shenzhen DJI Sciences and Technologies Ltd., which was added to the Entity List in December (see 2012180039), may have dropped its prices for drones by as much as 70% in 2015, which allowed it to capture a significant share of the U.S. drone market. The lawmakers also said DJI should remain on the Entity List and deserves “additional scrutiny” because its drones have been used for human rights abuses in China. “We ask that DJI remain on the Department’s Entity List and that the Department investigate its pricing of consumer drones which has harmed American consumers,” the letter said. Commerce didn’t comment.
After talks with the Commerce Department broke down over when Hong Kong-based apparel company Changji Esquel Textile (CJE) could be dropped from the agency's entity list, CJE resumed its litigation against the designation in federal court. The company, part of the Esquel group, on Aug. 27 filed a motion to re-set a hearing on a preliminary injunction against its placement on the list.
Export Compliance Daily is providing readers with the top stories for Aug. 16-20 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Bureau of Industry and Security fined a U.S. semiconductor manufacturer $469,060 for working with others to export chip-making equipment to Chinese companies on the U.S. Entity List, BIS said in an Aug. 16 order. The company, California-based Dynatex International, violated the Export Administration Regulations because it didn’t obtain the required BIS license before shipping the equipment. Although BIS said Dynatex knew it was shipping items to blacklisted companies, the agency substantially reduced the fine as part of a settlement agreement.
Export Compliance Daily is providing readers with the top stories for Aug. 9-13 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.