Chinese government efforts to obscure which firms have public links to the country’s military are making due diligence more complicated, but compliance officers can use several strategies to overcome those challenges, said Colby Potter, a former intelligence official with the State Department.
The University of Kentucky this week launched a new site to provide export control and sanctions guidance to students, researchers and other members of the school, warning that there are “severe consequences to noncompliance,” including fines and possible prison time. The site covers the basics of export controls, including which countries are subject to embargoes; research guidance; information on international shipping, travel and collaboration; compliance training; a set of FAQs; and more.
Taiwan Semiconductor Manufacturing Company recently spoke with Commerce Department about a possible export control issue involving one of its advanced chips, a company spokepserson said. TSMC "proactively communicated with the US Commerce Department regarding the matter," the person said Oct. 23. "We are not aware of TSMC being the subject of any investigation at this time."
The Biden administration believes it has struck the right balance in managing technology trade with competitors such as China, White House National Security Adviser Jake Sullivan said Oct. 23.
New export controls over U.S. persons’ support for certain foreign military, intelligence and security services activities would place too much strain on both the government and industry compliance departments, disadvantage American exporters compared with their foreign competitors, and may provide no clear benefit to U.S. national security, companies and trade groups told the Bureau of Industry and Security.
The Bureau of Industry and Security will add 26 companies and people to the Entity List after the agency said they violated U.S. export controls -- including by supplying sensitive items to China, Iran, Pakistan or Russia -- or failed to comply with U.S. end-use checks.
The Bureau of Industry and Security will soon remove Sandvine Inc., a Canada-headquartered technology software company, from the Entity List after BIS said it took “significant steps” to improve its compliance controls and stop its technology from being used for human rights breaches.
Banks should consider investing in additional processes and technology to adhere to the Bureau of Industry and Security’s new export compliance guidance for financial institutions, Sheppard Mullin said in a blog post last week.
New proposed rules for U.S. surveillance technology exports will help protect human rights worldwide, but additional steps should be taken to ensure American-made products aren't used to commit abuses, Freedom House said last week.
Both a potential Kamala Harris and a potential Donald Trump administration are likely to continue the U.S. government’s increasing focus on sanctions and export control enforcement, even if their approaches to specific trade measures may differ, such as tariffs against China or sanctions against Russia, said Adam Smith, a Gibson Dunn lawyer.