Although scholars from the U.S., Japan and South Korea said the three countries largely agree on China-related semiconductor export controls, they said those conversations could grow more difficult as the U.S. continues to restrict a broader set of advanced chips and chipmaking equipment.
The Bureau of Industry and Security is working more closely with the Office of Foreign Assets Control on enforcement issues, which could allow the two agencies to better align the BIS Entity List and OFAC’s Specially Designated Nationals List, a BIS official said this week.
The semiconductor industry is pushing the Biden administration for more transparency surrounding its future plans for export controls on chips and chip tools, saying the uncertainty is causing more foreign customers to avoid using advanced U.S.-origin technology. The industry also warned that China has seen a sharp uptick in domestic orders for chips and chipmaking equipment following the most recent U.S. controls, potentially jeopardizing sales to the American semiconductor industry’s largest market.
Exporters will have at least another month to digest the Bureau of Industry and Security's recently updated semiconductor export controls before the agency issues clarifications and corrections.
The U.S. this week sanctioned more than 250 people and companies supplying Russia’s military in violation of U.S. sanctions and export controls, targeting procurement networks in China, Turkey, the United Arab Emirates and elsewhere. The Treasury and State departments said many of the newly sanctioned companies supplied Russia with goods listed on the Commerce Department’s list of common high-priority items, including electronic components, while others sold Russia advanced weapons and military technology.
New York-based stock exchange Nasdaq agreed to pay more than $4 million to settle allegations that its former Armenian subsidiary, which owned the Armenian stock exchange, violated U.S. sanctions against Iran. The enforcement notice released by the Office of Foreign Assets Control, which details violations stemming from transactions more than a decade ago, said Nasdaq failed to apply its sanctions compliance policies to the Armenian stock exchange, which illegally allowed the Armenian branch of an Iranian bank to participate.
New guidance from the Biden administration this week warned shippers, forwarders, brokers, ship owners and others involved in maritime and other transportation industries to better know their cargo, saying they each have a “responsibility” to craft their own “rigorous” compliance programs. The 10-page sanctions advisory specifically calls out freight forwarders, saying they play a “key role” in compliant supply chains.
The Bureau of Industry and Security is studying ways it can place potential export controls on access to advanced open-source software, including artificial intelligence-powered models similar to ChatGPT-4, as well as certain cloud computing services, BIS Undersecretary Alan Estevez said. Although Estevez said no controls are imminent, the agency is working to form a set of export control policy options to address both.
The U.S. and its allies need a new framework to coordinate export controls on advanced, critical technologies, Bureau of Industry and Security Undersecretary Alan Estevez said. But he also said there is some disagreement within the U.S. government about the best way forward.
U.S. export controls will slow China’s innovation efforts, but they'll never “stop” the country from advancing technologically, Bureau of Industry and Security Undersecretary Alan Estevez said.