American allies, including the EU, should introduce their own versions of the U.S. foreign direct product rule and the October 2022 U.S. persons controls that restricted additional sensitive semiconductor exports (see 2212210059), the Center for Strategic and International Studies said in a new report.
The U.K. this year plans to update its export controls to align them with changes recently made by the multilateral Wassenaar Arrangement, Nuclear Suppliers Group and Australia Group. The updates include changes to the technical parameters for certain advanced artificial intelligence chip uses; revisions to the definitions for “spacecraft,” “satellite,” “space probe” and “space vehicle”; and more. The U.K. said it plans to make the changes this spring.
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The Bureau of Industry and Security is adding 82 entities, mostly in mainland China, to the Entity List, targeting technology companies, chip firms, electronics businesses and others for their ties to Chinese military end-users. The additions, the first since President Donald Trump took office in January, also target entities in Taiwan, Pakistan, the United Arab Emirates, South Africa and Iran for a range of reasons that BIS said are “contrary to the national security and foreign policy” of the U.S.
Three House members announced March 21 that they have introduced a companion bill to Senate legislation that would restrict U.S. outbound investment in China.
Companies moving export-controlled goods should generally require customers to fill out end-user and end-use statements for all transactions, even if the shipments are for less sensitive EAR99 items, Commerce Department officials said.
It’s still unclear how the Trump administration will approach the Bureau of Industry and Security's artificial intelligence diffusion rule or any of the agency’s recently published proposed or interim final rules that haven’t yet taken effect, a Commerce Department official said.
The Bureau of Industry and Security is hoping to publish new guidance to clarify due diligence expectations for companies subject to the agency’s recent semiconductor-related export control rules, Commerce Department officials said this week. They also said the agency is hoping to expand its list of approved designers that will benefit from some licensing carve-outs for certain chip exports.
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The Trump administration plans to substantially increase fines against companies that violate export controls, including against China, Commerce Secretary Howard Lutnick said this week. He also said the U.S. is planning to incorporate export control commitments into free trade deal negotiations as a way to incentivize trading partners to better restrict their sensitive technologies.