U.S. Chamber of Commerce CEO Suzanne Clark, in her annual "State of American Business" speech Jan. 12, said that if the Biden administration fails to strike a balance on how to respond to China's economic posture, it "could undermine our security, our economy, our competitiveness, and our future."
Exports to China
The U.S. should allow research labs working on sensitive technologies, including artificial intelligence, to continue operations in China despite new export controls limiting their activities, technology policy experts said in a report this week. They also said the U.S. should create a new research security institution to help academia and industry work through “ethically or geopolitically difficult questions” on research security.
The Office of Foreign Assets Control Dec. 30 fined a multinational Danish-based refrigeration manufacturer more than $4.3 million for violating U.S. sanctions against Iran, Syria and Sudan. Danfoss, which also sells air conditioners and other cooling and heating products, illegally directed customers in all three countries to make payments through a U.S. financial institution, OFAC said in an enforcement notice. The company also made illegal payments to entities in Iran and Syria.
The Bureau of Industry and Security issued a 180-day temporary denial order Dec. 13 against three people and two companies for illegally sending controlled exports to Russia as part of a Moscow-led sanctions evasion scheme. Along with the denial order, DOJ indicted the three individuals, along with others, on charges related to the illegal exports, including money laundering, wire fraud, bank fraud and conspiring to defraud the U.S.
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China announced the imposition of quarantine and hygienic requirements for imports of "edible aquatic animals" from The Comoros, the General Administration of Customs announced, according to an unofficial translation. The restrictions apply to crustaceans, fish and molluscs from the African archipelago that are shipped to China for consumption. Comorian exporting entities will be required to obtain Chinese registration qualifications and should establish and implement a self-inspection, self-control and traceability system for the safety and hygiene of the edible aquatic animals, among other requirements.
New Manufacturing USA Institutes can help the semiconductor industry reduce costs and accelerate innovation, particularly in emerging technology areas that could soon be subject to export controls, chip companies and industry representatives said in comments to the National Institute of Standards and Technology. They also said the Commerce Department should bar foreign entities from working with Manufacturing USA Institutes if they are subject to U.S. export restrictions or have operations in certain countries, including China.
The U.S. needs to “act quickly” to build a multilateral consensus on China export controls or risk other countries simply filling the vacuum left by the U.S. in China’s semiconductor market, two export control and national security policy experts said in a Dec. 30 piece for Foreign Affairs. Although U.S. officials have said they are confident an agreement with allies will soon be completed, the authors said it remains unclear whether the deal will create a “genuine, multilaterally controlled chokepoint” for advanced chip technologies.
Several U.S. technology companies recently disclosed their ongoing efforts to comply with new export restrictions against China (see 2210070049), with some determining the regulations will have little effect and others saying the uncertainty is leading to business interruptions.
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.