Export Compliance Daily is providing readers with some of the top stories for June 1-5 in case you missed them.
Exports to China
China’s Commerce Ministry criticized the U.S.’ recent addition of Chinese companies to the Entity List (see 2006030032) and said it will take “all necessary measures” to defend the rights of its companies, according to an unofficial translation of a June 5 notice. China said the U.S. has “abused” its export control measures, “causing serious damage to the international economic and trade order and a serious threat to the security of the global industrial supply chain.”
U.S. lawmakers and sanctions experts said the administration should move faster to impose sanctions on China for interference in Hong Kong and increase export controls on critical technologies and crowd control equipment. Democratic and Republican senators said they would back a bill introduced in the Senate this week that would sanction Chinese officials and foreign banks, while experts called for a focused, multilateral sanctions approach to minimize impacts on Hong Kong citizens and U.S. companies.
The Commerce Department's Bureau of Industry and Security will officially add 33 companies and government agencies to the Entity List on June 5 for their roles in aiding proliferation activities and human rights abuses in China’s Xinjiang province, BIS said in two Federal Register notices. The notices formalize the additions, which were announced in May (see 2005220058).
Export Compliance Daily is providing readers with some of the top stories for May 26-29 in case you missed them.
China reportedly ordered its state-controlled companies to stop buying certain U.S. agricultural products after the U.S. certified last week that Hong Kong no longer qualifies for special trade treatment. The decision also came after President Donald Trump said the U.S. will sanction Chinese officials, increase export controls on dual-use technologies, and end the special customs territory in response to Beijing’s so-called national security law (see 2005290047), which the State Department said threatens Hong Kong’s autonomy (see 2005270026).
The U.S. will officially strip Hong Kong of its special trade treatment, which will include changes to U.S. export controls and sanctions against Chinese officials, President Donald Trump said May 29. Trump said the export controls will impact dual-use technologies and sanctions will target both Hong Kong and mainland China officials.
The U.S. is considering a variety of sanctions, asset freezes and controls on transactions for China’s planned crackdown on Hong Kong’s autonomy, according to a May 26 report from Bloomberg. The Treasury Department could target Chinese officials and companies, the report said.
Secretary of State Mike Pompeo said, “No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground,” in a statement May 27 to Congress that Hong Kong no longer warrants the same treatment under U.S. laws as it did before the handover to China in 1997.
China criticized the U.S.’s decision to add more Chinese companies to its Entity List (see 2005220058), adding that it will take measures to “protect the legitimate rights and interests of the Chinese enterprises.” A Chinese Foreign Ministry spokesperson said the U.S. has “overstretched the concept of national security” and abused its export controls. “We urge the U.S. to correct its mistake, rescind the relevant decision, and stop interfering in China's internal affairs,” the spokesperson said during a May 25 press conference.