The Bureau of Industry and Security granted an export license for U.S. chip company Nexcel Electronic Technology (NETI) after the company told BIS that new restrictions on China would force NETI to shut down and fire all its employees. NETI, which provides certain semiconductor services to Chinese companies, was granted a four-year license to continue its operations, the company’s lawyer and trade consultant told Export Compliance Daily.
Exports to China
China “welcomes” the Commerce Department’s decision last week to remove 25 Chinese companies from the Unverified List but criticized the agency’s decision to add other firms to the Entity List, calling the move “economic bullying.” In a Dec. 16 statement, China’s Ministry of Commerce said the U.S. “has ignored the fact that Chinese and American companies conduct normal commercial transactions and trade exchanges, ignored the strong voices of Chinese and American industries, generalized the concept of national security” and “abused export control and other measures,” according to an unofficial translation of the statement.
The Bureau of Industry and Security added a host of Chinese and Russian entities to the Entity List, including top Chinese chipmaker Yangtze Memory Technologies Co. and leading Chinese artificial intelligence firms, the agency said in a pair of notices released Dec. 15. The new restrictions on the Chinese firms are aimed at “severely restricting” China’s ability to leverage AI, advanced computing and other commercial technologies for its military or human rights abuses, BIS Undersecretary Alan Estevez said. The agency added the Russian entities to the list after it was unable to complete end-use checks. The changes took effect Dec. 16.
The Bureau of Industry and Security will add a host of Chinese and Russian entities to the Entity List, including top Chinese chipmaker Yangtze Memory Technologies Co., the agency said in a pair of notices released Dec. 15.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The U.S. and the EU didn’t appear to make much progress on export controls, investment screening and other pivotal areas of cooperation at the latest Trade and Technology Council meeting this month, experts with the Center for Strategic and International Studies said during a Dec. 12 event. The two sides still look to be closely aligned on Russia controls and sanctions, the speakers said, but until the TTC announces more concrete measures, it remains unclear how similarly they view restrictions on China.
Technology competition with China, including U.S. foreign direct investment reviews, will be part of the oversight priorities of the Republican-controlled House during the next Congress, House Minority Leader Kevin McCarthy of California said last week.
The U.S. should prepare a range of economic and financial restrictions against China to deter it from invading Taiwan, including new sanctions against Chinese banks and outbound investment restrictions on Chinese technology sectors, said Sen. Dan Sullivan, R-Alaska. Sullivan said the sanctions should “go far beyond what has been imposed on Russia” and make clear to Beijing that “no corner of its economy will be left untouched by sanctions.”
The Bureau of Industry and Security this week renewed the temporary denial order (TDO) for three U.S. companies for their involvement in illegally exported technical drawings and blueprints to China (see 2206080068). The order, issued in June, was renewed for another 180 days, BIS said Dec. 5, partly because the agency found possible evidence of additional export violations.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.