The Bureau of Industry and Security will add seven Chinese entities to its Entity List this week for acquiring or attempting to acquire U.S. technology to aid China’s military. All the entities will require a license for all items subject to the Export Administration Regulations. BIS will review license applications under a policy of presumption of denial. The additions take effect Aug. 24.
China’s announcement this summer that it made progress in its chip technology doesn't necessarily mean there was a failure in U.S. export control policy, said Bill Reinsch, a senior export administration official during the Bill Clinton administration. Reinsch said it’s unclear if China’s new chip even exists and where Beijing received the equipment to produce it.
Congress should revise export control laws to ensure “naive bureaucrats” don’t prioritize commercial sales over national security, Sen. Marco Rubio, R-Fla., said this week. Rubio, referencing a Wall Street Journal report that said the U.S. approved 94% of license applications for technology exports to China in 2020, said the numbers show that “President Biden refuses to take the threat posed by the Chinese Communist Party seriously" and that “the situation is growing worse."
The Bureau of Industry and Security is looking to move forward with its May proposal for new export controls over four dual-use biological toxins (see 2205200017). The agency on Aug. 17 sent a final rule for interagency review that would implement the controls, which would apply to the marine toxins brevetoxin, gonyautoxin, nodularin and palytoxin. BIS said the toxins can be exploited for biological weapons purposes and the controls were proposed in May as unilateral restrictions because the Australia Group hadn't yet agreed to the controls. The agency received two public comments on the controls (see 2207190014).
The Bureau of Industry and Security this week issued a new set of frequently asked questions covering the Entity List, Russia-related export controls and Russia-related sanctions evasion.
The Bureau of Industry and Security extended a comment period on an information collection involving evaluations of its export compliance training seminars. BIS said it usually conducts more than 30 export compliance seminars per year, and said feedback on the seminars is “vital to ensuring the quality and relevance of outreach programs.” BIS previously requested public input in June, and now will allow another 30 days for submission of comments.
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.
The Bureau of Industry and Security last week announced new export controls on four technologies that can be used to produce advanced semiconductors and gas turbine engines. The controls, which were agreed to by members of the multilateral Wassenaar Arrangement at last year’s plenary, will apply to two substrates of ultra-wide bandgap semiconductors, certain Electronic Computer Aided Design (ECAD) software and certain pressure gain combustion (PGC) technology.
Even though U.S. export controls haven’t cut into SMIC’s profit margins, they have hurt the Chinese semiconductor company’s ability to advance its chip-producing technology, said Min-Hua Chiang, a Heritage Foundation research fellow. Because restrictions imposed by the Bureau of Industry and Security limit SMIC’s ability to import equipment for making chips below 10 nanometers, the company is “stuck with using older technology,” she wrote in an August post. “Without access to foreign equipment,” the post said, “it will be very difficult for China to produce the most advanced chips any time soon, putting a severe crimp in Beijing’s plans for its military and security apparatus.”
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.