The Commerce Department clarified this week that companies can’t use Chips Act funding to invest in certain new semiconductor facilities in China and other countries of concern, saying some companies may have thought the rules blocked only certain investments in existing facilities.

An executive order signed by President Joe Biden last week gives the U.S. broader authority to sanction financial institutions involved in shipments to Russia, marking a “significant step forward” in holding those foreign banks accountable for helping Moscow buy a range of critical items for its military, senior administration officials said.

Sen. Marco Rubio, R-Fla., is urging the Commerce Department to block exports of chip design software to China’s Brite Semiconductor, which reportedly offers chip design services to six Chinese military suppliers (see 2312130020).

A new executive order scheduled to be signed by President Joe Biden Dec. 22 will give the U.S. new authority to sanction financial institutions that facilitate transactions for companies sending controlled goods to Russia.

A former State Department official who advised on sanctions and money laundering, who also is a co-founder of Sayari Labs, a financial intelligence and commercial data provider, said that Hudson Institute will produce a paper on creating a broad sanctions program for China, complete with the kind of language that would allow it to be executive-order ready.

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An industry advisory committee is planning to push the Bureau of Industry and Security to release guidance on how companies should be applying the agency’s various foreign direct product rules.

The Bureau of Industry and Security this week officially extended the public comment deadline for its two China-related chip export control rules released in October (see 2312120055). The deadline, initially set for Dec. 18, was extended to Jan. 17. BIS said the extension will give industry and others more time to review the interim final rules and “benefit from the significant amount of public outreach that BIS is conducting on the rules prior to preparing and submitting their comments on the IFRs.”

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.

Chinese chip designer Brite Semiconductor is partly owned by a company on the Entity List yet still buys sensitive U.S. technology from two California software companies and receives funding from a U.S. venture capital firm backed by Wells Fargo, Reuters reported Dec. 13.