The State Department on March 31 issued its annual report to Congress certifying that Hong Kong doesn’t warrant differential treatment from mainland China under U.S. law. The report follows a determination last year by the Trump administration that Beijing’s so-called national security law was infringing upon Hong Kong’s autonomy, which led to a series of U.S.-imposed trade restrictions, sanctions and export controls (see 2005270026, 2012220053 and 2103170027). Secretary of State Antony Blinken said the U.S. will continue to work with Congress and allies “to stand with people in Hong Kong against [China’s] egregious policies and actions.”
Russian national Oleg Vladislavovich Nikitin, general director of St. Petersburg, Russia-based energy company KS Engineering, pleaded guilty in the U.S. District Court for the Southern District of Georgia to conspiracy to skirt export controls, the U.S. Attorney's Office for the Southern District of Georgia announced in a press release. Nikitin, admitted to attempting to sell a power turbine to a Russian company attempting to use it on an Arctic deepwater drilling platform -- a process banned by the Commerce Department without a license. An unnamed Russian government-controlled business contracted with Nikitin to buy the turbine from a U.S. manufacturer for $17.3 million. Nikitin, along with two others, was arrested in Savannah, Georgia, attempting to carry out the transaction for the turbine.
The Bureau of Industry and Security will hold a virtual forum April 8 to present ways the agency can help boost the competitiveness and capacity of the U.S. semiconductor industry, BIS said in a notice released March 26. The agency earlier this month requested written comments on semiconductor supply chain issues (see 2103110047) but said the forum will give commenters a chance to provide “oral remarks.” Comments will help inform the Commerce Department’s report to the White House as part of a February executive order to address supply chain shortages of semiconductor chips (see 2102240068), BIS said. Officials from BIS and other agencies will participate in the 2 p.m. to 5 p.m. EDT forum. Registration closes 5 p.m. April 1.
The Bureau of Industry and Security last week added a new section to its website to consolidate guidance and rulemaking documents related to human rights. The section includes links to recent Entity List additions related to human rights violations, and advisories for companies operating in China’s Xinjiang region (see 2007010040) and involved in exporting surveillance equipment (see 2009300056).
The Bureau of Industry and Security revoked export privileges for five people after they were convicted of violating various export control laws, including illegal shipments of guns, ammunition and other military items, BIS said in March 25 orders.
The Bureau of Industry and Security revised the Commerce Control List and the Export Administration Regulations to implement changes made during the 2019 Wassenaar Arrangement plenary, the agency said in a final rule released March 26. Along with revising various Export Control Classification Numbers and correcting language in the EAR, the rule eliminated certain reporting requirements for encryption items, which BIS expects to “reduce the regulatory burden” for U.S. exporters. The changes take effect March 29.
Intel will invest $20 billion to build two new semiconductor fabs in Arizona in a bid to become a “major provider of foundry capacity” in the U.S. and Europe, the company said March 23. It plans to use its expanded foundry capacity to “serve the incredible global demand for semiconductor manufacturing” and to partner with IBM to better research and develop next-generation packaging technologies.
The U.S. should be doing more to restrict Chinese semiconductor companies from buying U.S. equipment, which is strengthening China’s military and ceding U.S. technology leadership, researchers said. Although the U.S. should bolster domestic policies to help the semiconductor industry -- including through supply chain, manufacturing and research incentives (see 2102240052) -- the researchers said the Commerce Department’s export controls include loopholes for companies that sell advanced technologies to China.
The Bureau of Industry and Security is seeking comments on an information collection related to statements by the ultimate consignee and purchaser of U.S. exports, it said in a notice. The collection involves Form BIS-711, which provides information on the foreign importer receiving the U.S. technology and how the technology will be utilized, and “provides assurances” that the technology will not be used in violation of the Export Administration Regulations. Comments are due May 24.
The Bureau of Industry and Security is conducting an information collection related to a survey to assess the competitiveness of certain U.S. industries in the defense industrial base, a notice said. The survey will help BIS “develop policy alternatives to improve the international competitiveness” of those industries to “meet defense program needs.” Comments are due May 24.