European Commission President Ursula von der Leyen called for “reciprocity” and “proportionality” in the European Union's COVID-19 vaccine export regime, at a March 17 press conference. To incentivize greater openness in other countries' vaccine exports, von der Leyen placed a special emphasis on reciprocity, detailing how the EU is prioritizing exporting vaccines to countries that create their own vaccines. “We think this is an invitation to be open,” she said. “So that we also see exports from those countries coming back to the European Union.”
The U.S. continues to oppose Nord Stream 2 and threatened more sanctions against entities involved in the completion of the European gas pipeline, which is nearing completion despite U.S. pressure. Sanctions against the pipeline have “significant” bipartisan support from Congress, Secretary of State Antony Blinken said March 18, adding that the agency is “tracking efforts” to complete the project and is monitoring companies who may be involved. “The Department reiterates its warning that any entity involved in the Nord Stream 2 pipeline risks U.S. sanctions and should immediately abandon work on the pipeline,” Blinken said. The secretary's comments came a month after a bipartisan group lawmakers asked the State Department for an update on the agency’s implementation of sanctions against the pipeline (see 2102170013).
Companies will continue to see a rise in global scrutiny of foreign direct investments as European countries try to match the U.S.’s investment screening regime, which has set the standard for investment reviews, trade lawyers said. Several countries, including the United Kingdom and Germany, are quickly bolstering their regimes while the U.S. is continuing to expand its jurisdiction to keep China and sanctioned countries from acquiring critical technologies, the lawyers said.
Disappointed with the pace of the United Kingdom government's response on forced labor issues in China's Xinjiang region, parliamentarians on the Business, Energy and Industrial Strategy Committee issued a report on the situation, including policy recommendations on how to further crack down on modern slavery in Xinjiang. The BEIS Committee, responsible for oversight of the BEIS Department, issued sweeping recommendations for the government agency for its role in upholding human rights commitments in relation to business ties with China. The March 17 report declared that the BEIS Department “has shown little sign that it is taking a proactive or meaningful lead on investigating UK business links to forced labour and other human rights abuses in China or elsewhere.”
Germany announced the extension of general permits for exports in a March 17 notice, according to an unofficial translation. General Licenses No. 12 to No. 14 and General Licenses No. 16 to No. 28 are extended to March 31, 2022. General License No. 15 was already deemed valid until the same date. The update also detailed information on General License No. 28 -- Franco-German cooperation on export controls in the arms sector derived from the Franco-German Treaty of Aachen of 2019. The agreement gives privileges to de minimis arms exports. Also, in relation to arms exports from Germany to France, registration for the General Approval must be completed before use of the permit, a preliminary procedure must be made in certain cases and the General License user must request a “declaration of integration” from a French regulator. The general license provision entered into force April 1, 2020.
The Treasury's Office of Foreign Assets Control will allow for stock in Luokung Technology to be traded on U.S. exchanges until May 8, the company said in a March 11 news release. Luokung was previously designated as a Chinese military company and was scheduled for delisting on the NASDAQ on March 15. The company is fighting the designation in court, though a temporary restraining order request was dropped at Luokung's request due to the OFAC decision on March 11. Another Chinese company, Xiaomi, was recently granted a preliminary injunction over its designation (see 2103150035). Due to news of the court ruling in Xiaomi's favor, Luokung's stock shot up March 15, according to a press report on the NASDAQ website.
The U.S. sanctioned 24 Chinese and Hong Kong officials responsible for interfering in Hong Kong’s autonomy, building on previous designations issued last year. The new sanctions, announced March 17, target 14 vice chairs of the National People’s Congress Standing Committee and officials in the Hong Kong Police Force’s National Security Division, the Hong Kong and Macau Affairs Office and the Office for Safeguarding National Security.
The U.S. issued a series of increased export controls against Russia for the poisoning of Russian political opposition leader Alexei Navalny, including tighter restrictions on license exceptions and national security-controlled goods. The restrictions, first announced earlier this month (see 2103020067) but outlined in more detail in notices released March 17, will introduce new conditions and restrictions over sensitive exports to Russia and end certain U.S. arms sales to the county, the Commerce and State departments said. The restrictions take effect March 18.
The European Union notified the United Kingdom about its breaching of provisions of the Protocol on Ireland and Northern Ireland in the withdrawal agreement signed following Britain's departure from the EU. The March 15 letter of formal notice said the U.K. has violated the terms of the Ireland and Northern Ireland provisions regarding the movement of goods and pet travel, the European Commission said in a March 16 news release. The EU gave the U.K. a month to respond to the notice. The EU is challenging the U.K.'s extension of the Brexit grace period on food imports to Northern Ireland. EC Vice President Maros Sefcovic sent a separate letter to David Frost, U.K. co-chair of the Joint Committee, calling on the U.K. to end the Brexit grace period and imploring “good faith” consultations with the Joint Committee.
The Bureau of Industry and Security issued a correction for its January rule that expanded export restrictions on foreign military-intelligence agencies and certain weapons-related activities (see 2101140035), it said in a notice. BIS said it revised “an incorrect instruction that would have resulted in the inadvertent deletion of two subparagraphs” of the Export Administration Regulations. The rule would have deleted language that described licensing requirements for exports of certain rocket systems and unmanned aerial vehicles. “This was a technical error and BIS did not intend to remove the existing restrictions,” the agency said.