Exports to China

Although the EU is trying to reform its approach to export controls and other economic security issues, there still are loopholes in the bloc’s rules that allow technology to be illegally exported to China and elsewhere, EU policy experts said this week.

Although entities on the Treasury and Defense departments’ Chinese military company lists aren't necessarily subject to export controls, it's still very risky to do certain business with them, former Bureau of Industry and Security officials said this week. They said they would advise companies to treat those listed entities as prohibited Chinese military end-users unless they can prove otherwise.

Governments could eventually require companies to monitor their sensitive semiconductor equipment shipments by using location tracking features, which could help industry better conduct due diligence and improve government export enforcement, said Chris Miller, an expert on semiconductor technology policy and history.

Chinese semiconductor innovation could become “more difficult to assess” as Beijing grows more cautious about advertising its successes, which it fears could invite new U.S. export controls, said Paul Triolo, a China and technology policy expert.

Preparations continue for a jury trial set for April 1 in a criminal arms smuggling case involving the constitutionality of "specially designed" provisions in U.S. export controls (U.S. v. Quadrant Magnetics, LLC, W.D. Ky. # 3:22-CR-88-DJH).

American chip company Applied Materials has received multiple U.S. government subpoenas in recent months -- including one from the Bureau of Industry and Security -- asking for information about its exports to Chinese customers.

The leaders of the Senate Select Committee on Intelligence urged Commerce Secretary Gina Raimondo to strengthen biotechnology export controls to preserve U.S. leadership in the critical sector.

Companies should continue to see more Chinese additions to the U.S. Entity List this year, although Russia sanctions likely will continue to dominate the government’s time and resources, trade lawyers said this week.

The Bureau of Industry and Security added a Chinese electronics company and a Canada-headquartered technology software company to the Entity List for trying to illegally acquire U.S. items or for being involved in other activities that are “contrary” to U.S. national security and foreign policy, the agency said Feb. 26. It also removed one United Arab Emirates-based entity from the Entity List.

Businesses are relieved by the quasi-truce between China and the U.S., consultants and lawyers said on a trade panel last week, but those in the tech sectors expect more restrictions are coming in the near future.