The Office of Foreign Assets Control on Dec. 9. designated "a diverse array" of over 40 people and entities connected to corruption or human rights abuses in recognition of International Anti-Corruption Day and Human Rights Day. The sanctions target people and entities across nine countries, OFAC said.
The Office of Foreign Assets Controls designated Chinese fishing companies Dalian Ocean Fishing and Pingtan Marine Enterprise and their respective leaders, Li Zhenyu and Xinrong Zhuo, along with eight other affiliated entities and 157 vessels for serious human rights abuses related to Illegal, unreported and unregulated (IUU) fishing in violation of the Global Magnitsky Human Rights Accountability Act, according to a Dec. 9 news release.
U.S.-China tensions and trade restrictions have had a “chilling effect” on research and technology collaboration between the two countries, resulting in slower advancements in some scientific fields, according to a report last week from the Center for Strategic and International Studies and Stanford University's Center on China's Economy and Institutions. The report predicts that more U.S. policies “restricting collaboration” are likely. “[I]f export controls and restrictions on technology sharing in fields such as biotech are introduced by the executive branch, they could have significant repercussions for universities and researchers,” the report said.
The State Department’s Directorate of Defense Trade Controls completed an interagency review for a final rule related to certain license exemptions for allies. The rule, received by the Office of Information and Regulatory Affairs Dec. 2 and completed Dec. 8, would amend the International Traffic in Arms Regulations’ Supplement No. 1 to Part 126 “in support of allies.” DDTC in July announced an open general license pilot to authorize reexports and retransfers of certain defense items and services to Australia, Canada and the U.K. (see 2207190008).
The Bureau of Industry and Security again (see 2209120002) sent a final rule for interagency review that could implement certain export control decisions agreed to at the multilateral Australia Group and place new controls on certain marine toxins, plant pathogens and biological equipment. BIS sent the rule to the Office of Information and Regulatory Affairs Dec. 7 after previously sending it to OIRA Sept. 9, where it was completed with some changes (see 2209120002). The rule, if published, could finalize May proposed controls on four dual-use biological toxins that BIS said can be weaponized to kill people or animals.
As the EU and the U.S. look to impose new export controls on emerging technologies, they should also pursue efforts to remove outdated emerging tech export restrictions that are no longer effective, said Magnus Nordeus, of Digital Europe, a trade policy group, speaking during the EU’s annual export control forum last week. Nordeus said the two sides should “add an ongoing de-control review” to make sure trade policies aren’t unnecessarily placing U.S. and EU industry at a disadvantage compared with foreign companies.
The U.S. should prepare a range of economic and financial restrictions against China to deter it from invading Taiwan, including new sanctions against Chinese banks and outbound investment restrictions on Chinese technology sectors, said Sen. Dan Sullivan, R-Alaska. Sullivan said the sanctions should “go far beyond what has been imposed on Russia” and make clear to Beijing that “no corner of its economy will be left untouched by sanctions.”
European Securities Stakeholder Group Asks for Guidance on Maintaining Asset Rights in Russian Firms
The European Securities and Markets Authority (ESMA's) Securities and Markets Stakeholder Group (SMSG) recently released a paper on the geopolitical risks surrounding depositary receipts. The SMSG looked into the effect of both EU and Russian sanctions on DRs and asks for guidance and a harmonized approach from the ESMA and European Commission over how EU citizens can maintain their asset rights in Russian companies.
The EU General Court annulled the sanctions listing of the Kurdistan Workers' Party (PKK) on the EU's terrorism restrictions list, but it dismissed the PKK's challenge to its 2015-2017 and 2019 sanction designations. The General Court in 2018 annulled the PKK's 2014-2017 designations, noting the justification of the initial designation in 2002 was too old to determine if the group's involvement in terrorist activities at the time of that initial designation continued from 2014 to 2017.The European Court of Justice overturned its judgment in 2021, referring the case back to the General Court.
The EU extended the sanctions listing criteria for designation under the Democratic Republic of the Congo restrictions regime. The criteria now allows "for the application of targeted restrictive measures against natural or legal persons, entities or bodies that sustain, support or benefit from the armed conflict, instability or insecurity in the DRC."