The U.S. government decision to increase license requirements for certain foreign exports to Huawei may damage U.S. companies more than Huawei and China, experts said. The same may be true for sanctions being prepared against China for interference with Hong Kong’s autonomy (see 2005220011), the experts said, which may present a large challenge for U.S. businesses. “If the administration follows through on the kinds of threats that they’re talking about … it will have a hugely negative impact on U.S. companies operating there, it will have a hugely negative impact on the people of Hong Kong, and it will have a minuscule effect on China,” said Nicholas Lardy, a Chinese economy expert at the Peterson Institute for International Economics.
China criticized the U.S.’s decision to add more Chinese companies to its Entity List (see 2005220058), adding that it will take measures to “protect the legitimate rights and interests of the Chinese enterprises.” A Chinese Foreign Ministry spokesperson said the U.S. has “overstretched the concept of national security” and abused its export controls. “We urge the U.S. to correct its mistake, rescind the relevant decision, and stop interfering in China's internal affairs,” the spokesperson said during a May 25 press conference.
The United Nation Security Council designated Amir Muhammad Sa’id Abdal-Rahman al-Mawla, the new leader of the Islamic State of Iraq and Syria, according to a May 21 notice. The United Kingdom’s Office of Financial Sanctions Implementation updated its sanctions list to reflect the change. The ISIS leader was sanctioned by the U.S. in March (see 2003180022).
The State Department certified that Nicaragua is not taking steps to combat corruption, protect civil rights and hold fair elections, which could lead to additional U.S. sanctions, according to a notice. Under the Nicaragua Human Rights and Anticorruption Act of 2018, the U.S. may impose or sustain asset-freezing measures and other penalties after Secretary of State Mike Pompeo certifies that Nicaragua is not taking “effective steps” to stop corruption and other activities.
The Treasury’s Office of Foreign Assets Control sanctioned two senior Nicaraguan government officials for human rights violations and corruption, Treasury said in a May 22 press release. The sanctions target Julio Cesar Aviles Castillo, the commander-in-chief of the Nicaraguan Army, and Ivan Adolfo Acosta Montalvan, the Minister of Finance and Public Credit.
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Two senators plan to introduce a bill they say will expand U.S. sanctions against Chinese efforts to meddle in Hong Kong’s autonomy. The bill would impose sanctions on Chinese policymakers and entities and would introduce secondary sanctions against certain banks, said Sens. Pat Toomey, R-Pa., and Chris Van Hollen, D-Md.
A new law being considered by China’s National People's Congress could trigger U.S. export controls and cause the U.S. to revoke Hong Kong’s special customs status, said Jude Blanchette, a China expert at the Center for Strategic and International Studies. The new national security law, which is expected to be proposed during China’s current NPC session, would criminalize “treason, sedition and secession,” Blanchette said, and will likely cause the U.S. to enact measures under the Hong Kong Human Rights and Democracy Act, which passed in November 2019 (see 1911290012).
The Commerce Department's Bureau of Industry and Security postponed its annual Washington, D.C., export control conference (see 2004300049) to July 26-28, 2021, due to the COVID-19 pandemic, BIS said May 21. The conference was scheduled to run June 29 through July 1. Washington has stay-at-home orders in place through at least June 8. The agency previously canceled its April Los Angeles conference (see 2003120045) and postponed a series of export control seminars (see 2004140030).
Ukraine’s president issued a decree amending its sanctions list, according to a May 18 post on the EU Sanctions blog and a May 14 notice from Ukraine. The decree imposes sanctions on Russian entities, bans withdrawing certain funds outside Ukraine, cancels certain licenses and permits, and delists 233 entries from sanctions, the post said. The decree also renews a ban for three years on certain Russian internet service providers and social media sites, the post said.