Nvidia CEO Jensen Huang made the case last week for fewer export controls on the company’s chips, saying the U.S. government should allow Nvidia to “compete” in the Chinese market. He also avoided directly answering whether the company’s export license applications for China are being granted, despite the Trump administration announcing earlier this year that it planned to approve exports of Nvidia’s H20 chips in exchange for a cut of the sales revenue (see 2508220003).
European officials and Parliament members called on EU member states to double down on Russia-related sanctions implementation and enforcement, saying they know evasion is occurring, but countries have been too slow to act on sanctions rules or haven’t levied large enough penalties. They also expressed frustration that the EU hasn’t yet been able to confiscate frozen Russian assets for Ukraine, even as the European Commission said it’s preparing a proposal that would allow the bloc to indirectly use those funds while still complying with international law.
The Bureau of Industry and Security officially released a new regulation to introduce a 50% ownership threshold rule for parties on the Entity List and Military End-User List. The interim final rule, released and effective Sept. 29, will impose the same export license requirements as the parent company for any affiliate owned 50% or more by a party on the Entity List or Military End User List, similar to how sanctions are applied under the Office of Foreign Asset Control's 50% rule. The rule includes a 60-day temporary general license that “permits certain export, reexport, and transfer (in-country) transactions involving non-listed 50-percent or more owned foreign affiliates of parties on the Entity List or Military End-User List.” BIS is accepting public comments on the changes by Oct. 30.
The Bureau of Industry and Security has drafted and is preparing to soon publish an interim final rule that will introduce a 50% rule for parties on the Entity List and Military End-User List, according to a copy of the rule seen by Export Compliance Daily. The rule would impose the same export license requirements as the parent company for any affiliate owned 50% or more by an entity on those two lists, and it includes a 60-day temporary general license to authorize certain transactions with some non-listed entities before the new restrictions apply.
The U.K. this week published two new guidance documents that track exceptions and previous amendments to its Russia sanctions regime. The guidance allows users to search through a list of all Russia sanctions exceptions that the U.K. has introduced, as well as a list of the "statutory instruments" that have made changes to those sanctions and descriptions of the changes made.
China on Sept. 25 added three U.S. companies to its Unreliable Entity List for arms sales to Taiwan and three others to its Export Control List because they “endanger” Chinese national security, the Ministry of Commerce said.
Rep. Eugene Vindman, D-Va., and Delegate James Moylan, R-Guam, introduced a bill this month that would require the executive branch to report to Congress annually on China’s semiconductor manufacturing capabilities, including whether U.S. and allied export controls are curbing the development of that equipment.
Officials from the U.K. and Bermuda issued a joint statement this week committing to boost cooperation on sanctions, and the U.K. agreed to provide Bermuda with up to 300,000 pounds, or about $400,000, this year "for new initiatives to enhance Bermudian sanctions capacity and capability."
The U.K. this week sanctioned a British band and its label for counterterrorism reasons after they were found guilty of terrorism-related charges. The country sanctioned the musical group Embers of an Empire and its production company, Rampage Productions, for "promoting and encouraging terrorism via its dissemination of music whose content promotes and encourages terrorism." The U.K. also said they have "made funds available" to parties "involved in terrorism."
The Office of Foreign Assets Control this week sanctioned five people and one entity for helping North Korea's government generate revenue for its weapons and missile programs, including through weapons sales to the Myanmar military.