President Donald Trump issued an executive order Nov. 12 that will block Americans from transacting in “publicly traded securities” or investing in Chinese firms that have ties to the Chinese military when it takes effect Jan. 11, 2021. The EO bans investments in a range of Chinese companies included in lists published by the Defense Department earlier this year, including Huawei, Hikvision and other prominent Chinese technology companies (see 2008300001 and 2006250024). U.S. people or companies violating the order could be subject to restrictions or sanctions under the International Emergency Economic Powers Act, said the EO, which will be imposed by the Treasury Department after consultation with other agencies. The White House said agencies may soon issue “rules and regulations” to implement the order, including procedures for license applications.
The Bureau of Industry and Security withdrew a proposed rule from the Office of Information and Regulatory Affairs related to its strategic trade authorization (STA) license exception. The rule, which was received by OIRA Aug. 27 (see 2008280022) and withdrawn Nov. 12, would have clarified the “availability” and expanded restrictions on availability of the license exception under the Export Administration Regulations. A BIS spokesperson said the agency is still considering proposing the rule. “The rule was withdrawn for further informal interagency consultation,” the spokesperson said.
Danish state prosecutors charged a Danish holding company, its subsidiary and its director for violating sanctions against Syria, a Nov. 12 EU Sanctions blog post said. The company, which Denmark does not name, allegedly sold 172,000 metric tons of jet fuel to Russian companies, which delivered the fuel to Syria, a government news release said, according to an unofficial translation. The sales violated European Union sanctions and involved about 647 million Danish kroner, the equivalent of about $100 million.
The U.S. extended by one year national emergencies authorizing sanctions against Iran and Burundi, the White House said Nov. 12. U.S. relations with Iran “have not yet normalized,” so the national emergency will continue in effect through Nov. 14, 2021, it said. Although Burundi has shown progress toward a “peaceful transfer of power,” the U.S. has “not seen sufficient evidence that the situation is resolved,” the White House said, continuing the national emergency through Nov. 22, 2021.
The United Kingdom’s Office of Financial Sanctions Implementation amended 16 entries under its Venezuela sanctions regime, a Nov. 13 notice said. The notice updates identifying information for military and government officials under the Nicolas Maduro regime.
Western Union has not been able to find a workaround to new Treasury Department restrictions on Cuba (see 2010280027) and said it will soon not be able to process money transfers to the island, the company told customers Nov. 13. The company said it has “been working around the clock to explore every possible option to keep our services open between the U.S. and Cuba” but “we have not been able to find a solution in this limited timeframe.” The remittance restrictions, announced by Treasury’s Office of Foreign Assets Control earlier this year (see 2009230029 and 2010230024), will take effect Nov. 27.
More than 20 industry groups urged the Bureau of Industry and Security to be cautious as it considers controls over foundational technologies (see 2008260045), saying the wrong approach could stifle innovation, damage U.S. competitiveness and lead to costly shifts in global supply chains. The groups said any new controls should only be imposed after a calculated process with significant input from industry, and should include license exceptions and exclusions.
Arena Solutions and Trade Compliance Group will partner to help regulated manufacturers understand export control laws, the companies said in a Nov. 10 news release. Arena Solutions provides product development services for the high tech, consumer electronics and medical device industries. “Many companies are either unaware or ill-prepared to meet [International Traffic in Arms Regulations] and [Export Administration Regulations],” Arena Solutions CEO Craig Livingston said. “Our platform provides a secure way to manage product development and management across the full lifecycle, and we are excited to have TCG provide import and export compliance consulting to our customers.”
Semiconductor Manufacturing International Corporation (SMIC) has “deep regret” about the Trump administration’s imposition of national security export restrictions on China’s largest chipmaker (see 2009280022), Chairman Zhou Zixue said on a Q3 investor call Nov. 11. Though the restrictions “will have an impact on SMIC in the near term, we believe it’s manageable,” he said. “We will continue to follow up on this matter and further evaluate the impact. The company will maintain close cooperation with suppliers and customers and continue to maintain active communication with the relevant department of the United States government working to resolve possible differences.”
The U.S. threatened sanctions against China and several other countries voiced concern after Beijing removed four pro-democracy legislators from Hong Kong’s parliament this week. U.S. National Security Adviser Robert O’Brien Nov. 11 said the forced removals provided more evidence that Beijing is seeking to quash dissent in Hong Kong. He said the U.S. will continue to punish China under the Hong Kong Human Rights and Democracy Act and the Hong Kong Autonomy Act (see 2008110046 and 2006040038). The U.S. will look to “identify and sanction those responsible for extinguishing Hong Kong’s freedom,” O’Brien said.