The U.S. is imposing export penalties against three Chinese companies, a Pakistani company and a Chinese national for their involvement in “missile technology proliferation activities,” the State Department said in a notice scheduled to be published in the Federal Register Sept. 12.
The House approved several export control-related bills late Sept. 9, including the Remote Access Security Act, which is designed to close a loophole that has allowed China to use cloud service providers to access advanced U.S. computing chips remotely (see 2409040046).
The Georgia Institute of Technology is severing ties with China-based Tianjin University, a school added to the Bureau of Industry and Secuirty’s Entity List in 2020, saying Tianjin’s placement on the list has made their relationship “no longer tenable.”
The House of Representatives plans to vote on several export control-related bills next week, including the Remote Access Security Act, which is designed to close a loophole that has allowed China to use cloud service providers to access advanced U.S. computing chips remotely.
Nazak Nikakhtar, acting head of the Bureau of Industry and Security during the Trump administration, blamed the deep state for a lack of urgency in confronting China, during a podcast interview with China Talk. Nikakhtar did not use that term, but said that it was hard for Commerce Department career officials to shift their thinking from promoting exports of goods to restricting exports or investment. Nikakhtar was previously a civil servant herself, working on antidumping and countervailing duty cases and negotiations with China.
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The leaders of the House Select Committee on China asked the Commerce Department last week to describe the steps the Biden administration is taking to address attempts by Chinese companies to offer their products through different companies to evade U.S. restrictions.
Sen. Rick Scott, R-Fla., urged the Biden administration last week to take action against Chinese companies that form U.S.-based subsidiaries to evade sanctions and other restrictions imposed by the U.S. government.
New guidance issued last week by the Bureau of Industry and Security outlines how exporters should use contractual clauses in their sales contracts to prevent Russia-related trade violations, including how BIS views the EU’s requirement for a “no-Russia” clause. The agency also warned foreign corporate service providers about letting “bad actors” use rented addresses for billing or shipping, which they can use to evade detection when violating export controls.
The Bureau of Industry and Security is expanding the scope of its Russia/Belarus-related Foreign-Direct Product rule and adding new export controls on certain computer numerical control (CNC) machine tools-related software, the agency said last week. The FDP rule changes, effective Aug. 27, allow BIS to “more aggressively target” third-country companies procuring controlled goods that are indirectly sent to Russia, BIS said, while the CNC machine tool controls, effective Sept. 16, will prevent those tools in Russia and Belarus from receiving certain software updates.