More countries are using cryptocurrencies to evade U.S. sanctions, a troubling trend that could damage U.S. sanctions regimes if not managed correctly, sanctions experts told Congress this week. The experts said lawmakers should provide more funding to the Treasury Department's Office of Foreign Assets Control to address the issue and should push for more public-private partnerships to help OFAC target cryptocurrency users.
The two top Republicans on the Senate and House foreign affairs committees urged President Joe Biden to immediately impose a second round of sanctions against Russia under the U.S. Chemical and Biological Weapons Control and Warfare Elimination Act. In a June 16 letter, Sen. Jim Risch, R-Idaho, and Rep. Michael McCaul, R-Texas, said the administration was required to impose a second round of sanctions under the CBW Act unless it certified to Congress by June 2 that the Vladimir Putin regime was “no longer using chemical weapons in violation of international law” and agreed to on-site inspections. The Biden administration had imposed the first round of sanctions against Russia in March (see 2103020067).
Members of Congress told the Federal Maritime Commission that they are hearing again and again about exporters being denied the opportunity to send their goods across the water, either directly, or with last-minute cancellations or unreasonable expectations on time to load, and so they asked why the FMC cannot solve these problems.
Although the U.S. will likely have to separate from China in certain technology sectors, Treasury Secretary Janet Yellen said she is concerned trade tensions could lead to a broader economic decoupling that could stymie technology innovation and damage the competitiveness of U.S. companies. “Our conflict with China could result in growing decoupling of technologies,” Yellen told the Senate Finance Committee June 16. “But I worry that if we are too broad in our policies in terms of how we approach this, we can lose the benefits that come from having globally integrated technology systems where advances in one country benefit countries worldwide.”
Republican lawmakers again threatened to remove export control responsibilities from the Commerce Department if it doesn’t move faster to issue restrictions over emerging and foundational technologies, doubling down on criticism levied at agency officials for months. The latest threat, sent in a June 15 letter to Commerce Secretary Gina Raimondo and signed by 10 Republican senators, highlights the tension between an agency that wants to avoid rushing into overbroad controls that could harm U.S. companies and lawmakers who say Commerce is neglecting a congressional mandate to restrict sensitive exports to China.
A Chinese private equity fund manager must obtain approval from the Committee on Foreign Investment in the U.S. before completing its transaction with a South Korean semiconductor company, a June 4 Securities and Exchange Commission filing said. Beijing-based Wise Road Capital and South Korea-based Magnachip Semiconductor, which has offices in the U.S., were told by CFIUS last month to submit a “notice concerning” Wise Road's buy of Magnachip, Magnachip said, which is now “conditioned on the receipt of CFIUS approval.” The two companies plan to file a joint voluntary notice, and Magnachip said it expects the deal's timeline to be delayed. Magnachip added that it doesn’t believe the transaction “will require any approval” in South Korea but plans to cooperate with the South Korean government if it has questions.
The Bureau of Industry and Security removed a company from the Entity List after receiving a removal request, the agency said in a notice released June 15. BIS removed Satori Corp., listed under the destinations of France and the United Arab Emirates, after the interagency End-User Review Committee received “information” that warranted its removal. The change is effective June 16. Satori was initially added to the Entity list in December (see 2012180039).
Republicans on the House Foreign Affairs Committee said the State Department must submit to Congress any new deal reached with Iran over its nuclear commitments and allow lawmakers to “review and assess” it. The lawmakers said a potential U.S. return to the Joint Comprehensive Plan of Action would “clearly” constitute a new deal and would require congressional review under the Iran Nuclear Agreement Review Act of 2015.
The Biden administration emphasized how reaching an agreement to end a 17-year-dispute over government subsidies to both Airbus and Boeing does more than just lift tariffs for at least five years. They see the most significant plank of the agreement as the one in which European Union countries agree to prevent foreign investments in the aerospace sector that are done to acquire technology or know-how, and to counter investments by European aerospace companies in China or other countries that are done in response to incentives or because the investments are a condition to sell in that market.
Seven senators, including Senate Foreign Relations Committee ranking member Jim Risch, R-Idaho, are asking the administration to consider removing Nicaragua from the free trade agreement with Central American countries if political conditions in that country continue to deteriorate. Risch was joined on the June 10 letter by Sens. Patrick Leahy, D-Vt., Dick Durbin, D-Ill., Marco Rubio, R-Fla., John Cornyn, R-Texas, Todd Young, R-Ind. and Bill Cassidy, R-La.