China’s Commerce Ministry urged the U.S. against placing new export controls on companies linked to Huawei after hearing the U.S. is reportedly considering adding them to the Commerce Department’s Entity List.
China’s Semiconductor Manufacturing International Corp. “potentially” violated U.S. export control laws by producing 7 nanometer computing chips with American equipment it obtained before the Bureau of Industry and Security imposed updated export controls on chip-making tools last year, BIS Undersecretary Alan Estevez said.
The House on March 19 passed, by voice vote, a bill that would require that certain export licensing disputes be resolved by a majority vote of the government's interagency Operating Committee for Export Policy. Those disputes are currently resolved by the Operating Committee chair, who is a Bureau of Industry and Security employee.
The Bureau of Industry and Security is adding new export license requirements for people and entities designated under certain Treasury Department sanctions programs, a move it said will strengthen U.S. financial blocking measures and act as a “backstop” for activities that those restrictions don’t cover.
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The Bureau of Industry and Security recently suspended the export privileges of 10 people for illegally exporting either weapons, ammunition or sensitive documents to Russia, China, Haiti or Mexico.
Michael Rithmire, former director of the Bureau of Industry and Security's Sensors and Aviation Division, joined semiconductor company Lam Research as its global trade director, he announced on LinkedIn last week. Rithmire most recently worked as a part-time consultant with Akin Gump after leaving BIS in September.
The U.S. announced new export controls against Nicaragua this week in response to human rights abuses by the country's government and its support for Russia’s invasion of Ukraine. The measures, outlined in two final rules effective March 15, will put in place stronger Commerce Department export licensing requirements for Nicaragua and add the country to a list of nations maintained by the State Department that generally don’t receive license approvals for controlled defense items.
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.
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.