The Bureau of Industry and Security's new sweeping set of export controls (see 2210070049) will “likely damage” the Chinese semiconductor and advanced computing industries and the U.S. and foreign companies that sell to those sectors, ArentFox said in an Oct. 10 alert. “While that was clearly the point of the new rule, we are expecting total chaos for a while,” the law firm said, adding that there is a “lot to unpack” in the 139-page rule.
The Bureau of Industry and Security added 31 Chinese entities to its Unverified List last week, including Yangtze Memory Technologies Co., a semiconductor firm that U.S. lawmakers for months have urged BIS to add to the more restrictive Entity List. The final rule, which took effect Oct. 7, also removed nine other entities from the UVL and included new guidance on what types of criteria and activities may lead to the transfer of UVL entries to the Entity List.
The Bureau of Industry and Security last week announced a broad set of new export controls it said will restrict China’s ability to acquire advanced computing chips and manufacture advanced semiconductors. The controls, outlined in an interim final rule that will take effect in phases, will impose new restrictions on a range of advanced computing semiconductor chips and semiconductor manufacturing items, impose controls on transactions for supercomputer end-uses and certain integrated circuit end-uses, and introduce new restrictions on transactions involving certain entities on the Entity List.
The Bureau of Industry and Security should add China’s Yangtze Memory Technologies Co. to the Entity List, China Tech Threat, an organization that advocates for stronger export controls on China, said in an Oct. 4 letter to BIS. The letter points to a potential partnership between Apple and YMTC (see 2209220022), which would “put U.S. and other foreign manufacturers out of business” and will allow China’s Ministry of Industry and Information Technology to move closer to “achieving its objective of forcing companies to turn to China as their prime source for advanced technologies.”
The Bureau of Industry and Security revised how it assesses penalties in settlements involving anti-boycott violations, according to a final rule, which, effective Oct. 7, amends a supplement to the Export Administration Regulations to clarify and change the agency’s guidance on anti-boycott charging practices to allow it to better address more serious violations.
The Bureau of Industry and Security announced a sweeping set of new export controls it said will restrict China’s ability to acquire advanced computing chips and manufacture advanced semiconductors. The controls, outlined in a final rule that will take effect in phases, will impose new restrictions on certain advanced computing semiconductor chips and semiconductor manufacturing items, impose controls on transactions for supercomputer end-uses and certain integrated circuit end-uses, and issue new restrictions on transactions involving certain entities on the Entity List.
The Bureau of Industry and Security added 31 Chinese entities to its Unverified List, including semiconductor firm Yangtze Memory Technologies Co., it said in a final rule effective Oct. 7. BIS said it hasn’t been able to verify the “legitimacy and reliability” of the entities through end-use checks, including their ability to responsibly receive controlled U.S. exports. All export license exceptions involving those parties will be suspended, and exporters must obtain a statement from any party listed on the UVL before proceeding with certain exports.
The Bureau of Industry and Security this week renewed temporary denial orders for three Russian airlines accused of violating U.S. export controls against Russia. BIS first suspended the export privileges of Aeroflot, Azur Air and UTair in April, barring the airlines from participating in transactions with items subject to the Export Administration Regulations (see 2204070010). Despite the restrictions, BIS said all three airlines have continued to operate flights into and out of Russia. The orders were renewed for another 180 days from Oct. 3.
The Bureau of Industry and Security recently revoked export privileges for five people after they illegally exported or tried to export controlled items from the U.S.
The White House should hold off on issuing a “unilateral” executive order on outbound investment screening (see 2209290043 and 2209140041) and should instead work with Congress to address sensitive investment flows to China, said Rep. Patrick McHenry of North Carolina, the top Republican on the House Financial Services Committee. In an Oct. 3 letter to National Security Adviser Jake Sullivan, McHenry said he is “concerned that the Administration may choose to resort to unilateral measures,” including the International Emergency Economic Powers Act, rather than “work with Congress to address the threat posed by China.”