Republican Lawmaker Proposes Export Controls, Sanctions Amendments to NDAA
Rep. Michael McCaul, R-Texas, recently offered several amendments to the 2022 National Defense Authorization Act, including provisions relating to export control statistics, the Entity List and sanctions.
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One amendment would require the Bureau of Industry and Security to provide Congress with quarterly reports on all approved or denied export control licenses for shipments to Chinese companies on the Entity List. It also would require BIS to add all entities on the Defense Department’s list of Chinese military companies (see 2106280023) to the Entity List, which would subject them to a strict license requirement.
A second amendment outlines certain conditions BIS and the president would have to meet before removing China’s Semiconductor Manufacturing International Corporation from the Entity List and strengthens restrictions against SMIC (see 2012180039). Before removing the company from the list, the president would have to certify to Congress that SMIC “ceased its activities that were the basis for its addition to the Entity List” and no longer releases technologies “used to carry out violations of internationally recognized human rights.” The amendment would also require BIS to update SMIC’s licensing restrictions by imposing a presumption of denial for all exports to SMIC of items that support the “development or production of semiconductors at technology nodes 16 nanometers or below.”
A third amendment would require the president to impose sanctions on the Nord Stream 2 gas pipeline “to stop the [Vladimir] Putin regime from making this Russian malign influence project operational,” according to the McCaul press release. Sanctions would be imposed on “any entity responsible for planning, construction, or operation” of the pipeline, "or a successor entity."