The Biden administration believes it has struck the right balance in managing technology trade with competitors such as China, White House National Security Adviser Jake Sullivan said Oct. 23.
With the United States and the EU both preparing to increase their scrutiny of outbound investment, the two parties should closely coordinate their efforts to achieve the best possible outcome, a Germany-based researcher said Oct. 22.
New export controls over U.S. persons’ support for certain foreign military, intelligence and security services activities would place too much strain on both the government and industry compliance departments, disadvantage American exporters compared with their foreign competitors, and may provide no clear benefit to U.S. national security, companies and trade groups told the Bureau of Industry and Security.
The leaders of the House Select Committee on China urged the Commerce Department Oct. 16 to restrict exports of U.S.-made semiconductor manufacturing equipment (SME) to Huawei's “clandestine network” of companies.
The Bureau of Industry and Security recently updated a table on its website that lists which countries are eligible for License Exception Implemented Export Controls, an exception unveiled Sept. 5 that allows exporters to ship certain quantum computing items, chip machines and other advanced technologies without a license (see 2409050028). In a final rule, BIS said it updated the table on Sept. 17 by adding Denmark, Finland and Japan “to appropriate items in the table.” It also revised the table’s URL to be “shorter and simpler” and made other minor changes. The final rule is effective Oct. 16.
The U.S. will probably increase its use of sanctions and export controls no matter who wins the upcoming presidential election, although a Donald Trump-led administration would be more likely to pursue drastic measures that could accelerate U.S.-China decoupling, said Martin Chorzempa, a senior fellow with the Peterson Institute for International Economics. Those measures include expanding the use of the Bureau of Industry and Security’s foreign direct product rule or placing blocking sanctions on major Chinese companies such as Huawei.
The Bureau of Industry and Security appears to be making good on its pledge to step up export control enforcement to protect sensitive American technology from China, two former U.S. government officials said Oct. 15.
Group of 7 officials meeting in Rome last week said they have made progress on semiconductor supply chain issues and stressed the importance of addressing industrial policies that are unfairly propping up certain domestic chip industries.
The Committee on Foreign Investment in the U.S. is increasingly requiring companies to enter into mitigation agreements before approving a deal, and those agreements are getting more complex, said a former senior government official who worked on CFIUS cases. And although some companies fear the ongoing CFIUS review of Japan’s Nippon Steel signals that the committee could be veering away from its traditional national security focus, the former official said he’s not expecting the Nippon Steel case to spark a trend of politically motivated reviews.
Companies affected by Norway’s recently announced export controls on emerging technologies should “act promptly” to make sure their exports don’t raise any legal or reputational risks, including by updating internal compliance programs, training employees on new licensing requirements and correctly classifying their goods and technology, the law firm Wikborg Rein said in an October client alert. The firm also said companies should review their current business dealings to identify any transactions that will require a license after the new controls take effect Nov. 1.