U.S. export controls against Russia have proven to be effective more quickly than expected, said Thea Kendler, the Bureau of Industry and Security's assistant secretary for export administration. While the U.S. restrictions have hit key Russian industrial and defense inputs, Kendler said a major reason behind their success has been the substantial buy-in from allies in Europe and Asia.

The U.S.-EU Trade and Technology Council has so far made “good progress” on export controls and foreign investment screening, but both sides can do more to further harmonize their trade and investment restrictions, said Valdis Dombrovskis, the EU’s top trade official. Speaking at the European Parliament this week, Dombrovskis said Russia’s invasion of Ukraine highlights the need for more trade collaboration.

Private sector and government leaders from around the world talked about what their firms are doing and how the World Trade Organization could be a forum for creating smoother flowing supply chains.

When it runs out of its current equipment, the Russian military will face challenges sourcing critical technologies to upgrade and maintain its military goods, due to U.S. export controls (see 2202240069), the Atlantic Council said in a March 18 post on its website. But much of that could depend on how successfully the U.S. and its allies can enforce the restrictions, the Atlantic Council said, and whether Chinese companies comply with the restrictions or decide to supply chips to Russia and expose themselves to secondary sanctions or similar U.S. export controls (see 2203140009).

China is unlikely to violate U.S. sanctions against Russia because it fears the consequences of U.S. secondary sanctions too much, said Kevin Rudd, president of the Asia Society and former Australian prime minister. China also will likely avoid providing military support to Russia, Rudd said, which could invite similar U.S. sanctions that could hurt its major state-run and private technology companies.

Sen. Todd Young, R-Ind., and Rep. Doris Matsui, D-Calif., on March 21 expressed optimism that Congress can begin conference negotiations on its China package before the end of the work period, as planned by Senate leadership (see 2203170075).

The U.S. should tighten export controls against the Beijing Genomics Institute and its subsidiaries to prevent it from importing U.S. genomic and semiconductor technologies, the House’s Republican-led China Task Force said in a letter to National Security Adviser Jake Sullivan. Although the Commerce Department’s Entity List has two of BGI’s subsidiaries, the lawmakers said several more should be added to restrict the company’s “access to technology, data, and money.”

The Commerce Department should tighten export restrictions on China’s top chipmaker to prevent it from importing sensitive semiconductor equipment and exploiting a U.S. export control loophole, Sen. Marco Rubio, R-Fla., and Rep. Michael McCaul, R-Texas said. The lawmakers, who voiced similar concerns to Commerce last year (see 2103190005), said in a March 17 letter to Commerce that its export control licensing policies for Semiconductor Manufacturing International Corporation are “ineffective” and are denying less than 1% of export applications to sell technology to the company.

The Senate will need to amend the House China package with upper chamber language and send it back to the lower chamber in order to begin conferencing the two measures, Senate Majority Leader Chuck Schumer, D-N.Y., said March 17. Calling it a procedural step, he noted a “small band of Republicans” is standing in the way of “quick action.”

Senate Majority Leader Chuck Schumer, D-N.Y., and Senate Minority Leader Mitch McConnell, R-Ky., are negotiating to begin conference on the China package this work period, a Senate aide said by email. The work period is scheduled to end April 8.