The Bureau of Industry and Security will add China’s Semiconductor Manufacturing International Company and more than 60 companies to the Entity List for actions “deemed contrary” to U.S. national security. BIS said SMIC, China’s top chipmaker, has concerning ties to China’s government and risks transferring imported U.S. technology to the country’s military. Other companies will be added to the Entity List for human rights abuses, for supporting China’s militarization of the South China Sea, for diverting U.S. products to China’s military and for the theft of U.S. trade secrets. BIS did not immediately say when the restrictions will take effect.

The Office of Information and Regulatory Affairs on Dec. 15 completed its review of a final Bureau of Industry and Security rule that would remove Hong Kong as a “separate destination” under the Export Administration Regulations. OIRA began reviewing the rule in November (see 2011090007). BIS said in its fall regulatory agenda that it hopes to publish the rule in February 2021 (see 2012150037).

The Office of Information and Regulatory Affairs on Dec. 14 began reviewing an interim final Bureau of Industry and Security rule that will expand end-use controls. If published, the rule will expand certain end-use and end-user controls on “specific activities of U.S. Persons.” A BIS spokesperson declined to comment.

China is a threat to the U.S., Sen. Tom Cotton, R-Ark., said, and he said there's a risk that “the next administration could roll back much of the progress we’ve made the past few years, in an attempt to return to the failed dream of engaging and accommodating China.” Cotton, the chairman of the Senate Banking Committee Subcommittee on Economic Policy, led a subcommittee hearing Dec. 16 on U.S.-China Economic Competition. Cotton said during the hearing that export controls must be tightened.

The Office of Information and Regulatory Affairs completed a review of a final Bureau of Industry and Security rule that would change the license review policy for exports of certain drones. The rule, received by OIRA Nov. 20 (see 2011230009) and completed Dec. 14, would change the review policy for exports of unmanned aerial systems to reflect the U.S.'s July decision to loosen restrictions on those exports (see 2007270035).

The Commerce Department published its fall 2020 regulatory agenda for the Bureau of Industry and Security, including new mentions of rules to amend Hong Kong under the Export Administration Regulations, releases of controlled technologies to standards setting bodies and a range of new technology controls.

The Office of Information and Regulatory Affairs on Dec. 11 began reviewing a final Bureau of Industry and Security rule that will implement more export controls agreed to at the 2019 Wassenaar Arrangement plenary. BIS published the first set of controls from the plenary in October (see 2010020042) but has since experienced rulemaking delays (see 2012080046).

The U.S. announced sanctions on Turkey for buying Russian missile defense systems, saying Dec. 14 the purchases provide “substantial funds” to Russia’s defense sector and harm U.S. national security. The sanctions target Turkey’s Presidency of Defense Industries (SSB) and several SSB officials, including SSB President Ismail Demir, Vice President Faruk Yigit, and air defense officials Serhat Gencoglu and Mustafa Alper Deniz.

The Office of Information and Regulatory Affairs on Dec. 8 completed a review of a final rule from the Bureau of Industry and Security that would clarify the scope of certain export restrictions to reflect decisions made at the June 2019 Australia Group plenary meeting. The rule, received by OIRA Nov. 16, would amend the scope of Export Control Classification Number 1C991, covering vaccines, immunotoxins, medical products, and diagnostic and food testing kits.

The Office of Information and Regulatory Affairs began reviewing a final Bureau of Industry and Security rule concerning Sudan. The rule, received by OIRA Dec. 3, would revise the Export Administration Regulations to reflect the U.S. rescission of Sudan’s designation as a state sponsor of terrorism (see 2011020012).