The U.S. sanctioned six Chinese and Hong Kong officials involved in implementing Beijing’s so-called national security law in Hong Kong (see 2007140068), the State Department said Jan. 15. The sanctions target You Quan, vice chairman of the Central Leading Group on Hong Kong and Macau Affairs; Sun Wenqing, deputy director of the Office for Safeguarding National Security in Hong Kong; and Tam Yiu-Chung, Hong Kong delegate to the National People’s Congress Standing Committee. Other sanctions target officials in the National Security Division of the Hong Kong Police: Frederic Choi Chin-Pang, Kelvin Kong Hok Lai and Andrew Kan Kai Yan. The sanctions were issued in response to the Jan. 6 arrest of more than 50 pro-democracy activists in Hong Kong.
The Office of Foreign Assets Control on Jan. 14 issued a new general license and several new frequently asked questions to provide guidance on President Donald Trump’s November executive order to ban U.S. investment in Chinese military companies (see 2011130026). General License No. 2 authorizes certain transactions and activities involving publicly traded securities of certain entities on OFAC’s Chinese military companies list (see 2012290017). Transactions with companies added to OFAC’s list after 12:01 a.m. EST Jan. 14 are authorized through 12:01 a.m. Eastern time on the date that is 365 days after the date the entity was added to OFAC’s list.
Congress and the incoming administration should strengthen and maintain a range of export controls and sanctions to prevent China from acquiring sensitive U.S. technologies and items used for repression, the Congressional-Executive Commission on China said in its 2020 annual report. The report and an executive summary, issued Jan. 14, urge the U.S. to continue to dedicate resources to restrict exports to China in order to prevent human rights violations.
The Bureau of Industry and Security is experiencing significant delays to its Huawei licensing decisions due to telework rules and the COVID-19 pandemic, a BIS official said. Communication between agencies has been hampered, the official said, leading to lengthy license adjudications and a backlog of applications.
An Indonesian paper product manufacturer settled for more than $1 million after apparent violations of U.S. sanctions against North Korea, the Office of Foreign Assets Control said Jan. 14. OFAC said PT Bukit Muria Jaya (BMJ) exported cigarette paper to North Korea and “directed payments” for those exports to its U.S. dollar bank account at a non-U.S. bank, causing U.S. banks to “clear wire transfers related to these shipments,” which included shipments to a sanctioned North Korean person.
The Bureau of Industry and Security added one Chinese entity to its Entity List, another to its Military End User List and removed two Russian entities from the MEU List, the agency said in a final rule. BIS added China National Offshore Oil Corporation Ltd. (CNOOC) to its Entity List for its involvement with China’s militarization of the South China Sea and designated Beijing Skyrizon Aviation Industry Investment Co., Ltd. because of its ties to China’s military. The changes are effective Jan. 14.
The Bureau of Industry and Security announced new controls on technologies and activities that may be supporting foreign military-intelligence end-uses and end-users in China, Cuba, Russia, Venezuela and other “terrorist-supporting” countries. The agency also will bolster controls to prevent U.S. people from supporting weapons programs, weapons delivery systems and weapons production facilities, BIS said in an interim final rule issued Jan. 15. The changes take effect March 16. Comments are due March 1.
The Bureau of Industry and Security removed certain license restrictions for Sudan (see 2012080003) to reflect the U.S. decision to rescind Sudan’s designation as a state sponsor of terrorism (see 2012170015). The final rule, effective Jan. 14, will amend the Export Administration Regulations by removing anti-terrorism controls on exports to Sudan and by removing Sudan from Country Group E:1, which makes the country eligible for a 25% de minimis level, BIS said. Sudan also was added to Country Group B and will be eligible for several new license exceptions.
Jenner & Block hired Rachel Alpert, previously with Latham & Watkins, as a partner, the firm said in a news release. Alpert also previously worked in the State Department Office of the Legal Adviser. Her work “supports organizations in the oil and gas, communications, travel, and other industries on legal issues involving export controls and US sanctions laws and regulations under the International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR), and Office of Foreign Assets Control (OFAC) regulations,” Jenner & Block said.
China criticized trade restrictions announced by the United Kingdom and Canada this week, which included export controls, import restrictions and other penalties for involvement with forced labor practices in Xinjiang. A Chinese Foreign Ministry spokesperson dismissed the allegations and urged both countries to reverse the measures. “Is there the slightest seriousness in their foreign policies?” the spokesperson said Jan. 13, according to a transcript of a regular news conference provided by the ministry. The comment was made in response to a question from a Reuters reporter, according to the transcript. “The U.K. and Canada should immediately revoke their erroneous decision, stop meddling in China's internal affairs and harming China's interests.”