While the Biden administration has made clear its intentions to pursue stronger export controls over advanced semiconductor-related equipment, companies should also be prepared to see potential export controls over a range of other sectors that the U.S. deems to be too reliant on China, Baker McKenzie trade lawyer Kerry Contini said. Contini, speaking during a July 14 Baker McKenzie conference, pointed specifically to President Joe Biden’s February executive order to address supply chain issues (see 2102240068), which mentions the medical and agricultural sectors as well as the chip industry.
The Biden administration is preparing to launch new export controls and investment screening initiatives to more closely coordinate with allies and better combat Chinese attempts to acquire advanced technologies, the U.S. secretary of state and national security adviser said July 13. Although the administration supports offensive tools, such as more funding for the domestic semiconductor sector, both officials said the U.S will continue to evolve its approach to defensive trade restrictions.
The European Parliament passed a resolution on July 8 calling for sanctions on high-ranking Nicaraguan officials responsible for human rights violations. The resolution called for President Daniel Ortega, Vice-President Rosario Murillo and their "inner circle" to be sanctioned while "taking particular care to do no harm to the Nicaraguan people." The resolution points to an increasingly dire situation following the "violent repression of civic protests" in April 2018, after which more than 100,000 people have been forced to flee the Central American nation.
Export Compliance Daily is providing readers with the top stories for July 6-9 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The U.S. updated its Xinjiang Supply Chain Business Advisory, highlighting the increasing supply chain, sanctions, labor and export control risks of doing business in the Xinjiang region. The July 13 update, which builds and expands on the original advisory issued last year (see 2007010040), says China is committing genocide through its human rights violations against Muslim minorities, provides guidance to businesses that may invest in implicated Chinese companies, updates a list of U.S. enforcement actions related to Xinjiang and "strengthens" recommendations for companies that risk doing business in the region.
President Joe Biden nominated Alan Estevez, a former Obama administration Pentagon official, to lead the Bureau of Industry and Security, the White House announced July 13. Estevez is currently a defense and security consultant with Deloitte Consulting after serving as the principal deputy undersecretary of defense for acquisition, technology, and logistics and representing the Defense Department on the Committee on Foreign Investment in the U.S. Estevez didn’t respond to a request for comment.
The United Kingdom's Office of Financial Sanctions Implementation updated two listings under its Belarus sanctions regime in a July 12 notice. The listings for Leanid Mikalaievich Churo and the Belaeronavigatsia Republican Unitary Air Navigation Services Enterprise, of which Churo is an employee, were amended to change the word "Unity" to "Unitary" in the entity's name. Both are still subject to an asset freeze.
The United Kingdom's Office of Financial Sanctions Implementation amended the Syria sanctions listing of Salam Tohme in a July 12 financial sanctions notice. The update changed Tohme's listed gender from Female to Male. Tohme is still subject to an asset freeze.
The European Parliament adopted three resolutions on the human rights situation in Hong Kong, Saudi Arabia and Iran, calling for sanctions on the three nations, according to a July 8 press release. The parliament strongly condemned the forced closure of the Apple Daily newspaper in Hong Kong and recommended sanctions on "individuals and entities responsible." The parliament also called for the cessation of the harassment and intimidation of journalists and the attempted muzzling of pro-democracy activists.
The European Union General Court dismissed a case from Iranian national Naser Bateni, who sought 250,000 euros in damages from his sanctions listings in 2011, 2012 and 2013, according to a July 7 judgment. Previous decisions from the court had annulled Bateni's listings for those years, finding that the European Council did not establish grounds that justified the designations and prompting the damages claim from Bateni. The court said that the council did not commit a "sufficiently serious breach" -- the standard for providing damages -- by relying on the information available to it when it made Bateni's sanctions determination. "The Council did not depart from the behavior which a normally prudent and diligent administration would have adopted," the judgment said. Bateni's appeal was "dismissed as being partly inadmissible and partly unfounded," according to an unofficial translation of the judgment.