U.S. export controls on computing chips and chipmaking equipment are more likely to slow China's advances in artificial intelligence than in military modernization, a researcher said during a Feb. 6 hearing of the congressionally mandated U.S.-China Economic and Security Review Commission.
The State Department officially published the Cuba Restricted List in the Federal Register this week, days after the Trump administration reinstated the list as part of an effort to reverse last-minute moves by President Joe Biden that removed certain sanctions against the country (see 2502030055, 2501220008 and 2501170021). Entities on the list are generally blocked by the Cuban Assets Control Regulations from participating in financial transactions with U.S. parties, and the Bureau of Industry and Security will generally deny export applications "for use by entities or subentities" on the list.
The Bureau of Industry and Security revoked the export privileges of a Florida-based freight forwarding company, the company’s owner and five other businesses for illegally shipping export controlled items to Russia as recently as last year, according to a BIS temporary denial order and court documents.
The Senate Commerce Committee voted, 16-12, Feb. 5 to advance President Donald Trump’s choice of Howard Lutnick to be commerce secretary, sending the nomination to the full Senate for its consideration. The vote came days after Lutnick promised to scrutinize U.S. export controls on advanced artificial intelligence chips, telling lawmakers in recently published comments that a review of the restrictions will be “a top priority” if he’s confirmed.
Sahar Hafeez, a former senior adviser in the Bureau of Industry and Security undersecretary’s office (see 2107270016 and 2107280051), has rejoined Pillsbury Winthrop as an international trade and national security lawyer, the firm announced this week. Hafeez was most recently a senior adviser to the assistant secretary for industry and analysis at the Commerce Department before leaving government last month.
President Donald Trump has nominated Jeffrey Kessler to be the Bureau of Industry and Security undersecretary, according to the Feb. 3 edition of the Congressional Record. If confirmed, Kessler would replace Biden administration official Alan Estevez in overseeing BIS. The White House didn't respond to a request for more information on Kessler, who is a Washington trade lawyer who was assistant secretary of commerce for enforcement and compliance during Trump's first term. Kessler didn't respond to a request for comment.
U.S. export controls are increasingly trending toward unilateral, extraterritorial restrictions as opposed to multilateral ones, and that could continue under the administration of President Donald Trump, said Jeannette Chu, vice president for national security policy at the National Foreign Trade Council.
The Bureau of Industry and Security last week modified its temporary denial order against Russian airline Azur Air to update the airline’s address. The order now lists Azur Air as located in Krasnoyarsk, Russia. It was previously listed with a Moscow address. BIS last renewed the order for one year in September, barring the airline from participating in transactions with items subject to the Export Administration Regulations (see 2409200059).
President Donald Trump’s efforts to slash the federal workforce are unlikely to target the Bureau of Industry and Security, which is already dealing with employee shortages as it carries out U.S. export control policy, a former senior BIS official said.
Companies should consider carrying out extra due diligence when vetting customers that could have connections to address-only listings on the Entity List, a trade lawyer and former Bureau of Industry and Security official said.