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 the title or by clicking on the hyperlinked reference number.
Apple is considering incorporating chips made by Yangtze Memory Technologies Co., Bloomberg reported March 30, a Chinese state-owned company that some lawmakers say should be placed on the Commerce Department’s Entity list. Apple is exploring placing YMTC memory chips into its iPhones after one of its key suppliers in Japan, Kioxia Holdings Corp., “lost a batch of output to contamination” in February, the report said. Apple is “keen to diversify its network and offset the risk of further disruption from the pandemic and shipping snarls,” the report said, and is now testing sample NAND flash memory chips made by YMTC.
The Treasury Department this week expanded its sanctions authorities to cover Russia’s aerospace, electronics and marine sectors, building on an April 2021 executive order that targeted the country’s defense and technology sectors (see 2104150019). Treasury also announced a host of new designations against Russian people and entities, including the country’s largest chip maker.
U.S. export controls against Russia have proven to be effective more quickly than expected, said Thea Kendler, the Bureau of Industry and Security's assistant secretary for export administration. While the U.S. restrictions have hit key Russian industrial and defense inputs, Kendler said a major reason behind their success has been the substantial buy-in from allies in Europe and Asia.
The U.S.-EU Trade and Technology Council has so far made “good progress” on export controls and foreign investment screening, but both sides can do more to further harmonize their trade and investment restrictions, said Valdis Dombrovskis, the EU’s top trade official. Speaking at the European Parliament this week, Dombrovskis said Russia’s invasion of Ukraine highlights the need for more trade collaboration.
Private sector and government leaders from around the world talked about what their firms are doing and how the World Trade Organization could be a forum for creating smoother flowing supply chains.
When it runs out of its current equipment, the Russian military will face challenges sourcing critical technologies to upgrade and maintain its military goods, due to U.S. export controls (see 2202240069), the Atlantic Council said in a March 18 post on its website. But much of that could depend on how successfully the U.S. and its allies can enforce the restrictions, the Atlantic Council said, and whether Chinese companies comply with the restrictions or decide to supply chips to Russia and expose themselves to secondary sanctions or similar U.S. export controls (see 2203140009).
China is unlikely to violate U.S. sanctions against Russia because it fears the consequences of U.S. secondary sanctions too much, said Kevin Rudd, president of the Asia Society and former Australian prime minister. China also will likely avoid providing military support to Russia, Rudd said, which could invite similar U.S. sanctions that could hurt its major state-run and private technology companies.
Sen. Todd Young, R-Ind., and Rep. Doris Matsui, D-Calif., on March 21 expressed optimism that Congress can begin conference negotiations on its China package before the end of the work period, as planned by Senate leadership (see 2203170075).
The U.S. should tighten export controls against the Beijing Genomics Institute and its subsidiaries to prevent it from importing U.S. genomic and semiconductor technologies, the House’s Republican-led China Task Force said in a letter to National Security Adviser Jake Sullivan. Although the Commerce Department’s Entity List has two of BGI’s subsidiaries, the lawmakers said several more should be added to restrict the company’s “access to technology, data, and money.”