A spokeswoman for China’s National Development and Reform Commission on June 17 gave the clearest indication yet that China may seek to impose restrictions on rare earths exports to retaliate for U.S. tariffs. In response to a question during a regularly scheduled press conference on potential export restrictions, the spokeswoman said China is “resolutely opposed” to “anyone who attempts to use China’s rare earth resources to manufacture products” that are used to “contain and suppress China’s development,” according to an unofficial translation. The spokeswoman also mentioned the possibility of export controls and traceability requirements for Chinese rare earths.
The European Union Council revoked its sanctions regime on the Maldives because of the country’s improving political situation, the council said in a June 17 press release. The sanctions were created in July 2018 to target people or entities that contributed to human rights violations and the “deterioration of the political situation” in the country, but “no persons or entities were listed under this sanctions regime,” the press release said. The council made the decision to revoke the regime after the country held “peaceful and democratic parliamentary elections” in April and committed to “ensure good governance, and promote respect for human rights” during a March policy meeting with the EU.
In the June 14 edition of the Official Journal of the European Union the following trade-related notices were posted:
Japan’s Center for Information on Security Trade Control (CISTEC) has added Huawei to its Chaser List of sanctioned companies, according to a recent report from Nikkei. The non-profit’s list is not binding, but it is used by Japanese exporters to avoid potential pitfalls, so Huawei’s listing could cause Japanese companies to scale back business with Huawei, the report said. The inclusion was likely automatic after Huawei’s addition to the U.S. Entity List, it said. The Chaser List includes companies sanctioned by the U.S., the European Union and the United Nations, among others.
The Treasury’s Office of Foreign Assets Control is amending regulations to adjust for inflation by increasing the maximum amount of civil monetary penalties that the agency may impose for certain violations, OFAC said in a June 13 update on its website and a notice scheduled to be published in the June 14 Federal Register. The change was made “to implement for 2019 the Federal Civil Penalties Inflation Adjustment Act of 1990,” the notice said. OFAC is increasing the maximum amount of penalties that fall under the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Antiterrorism and Effective Death Penalty Act of 1996, the Foreign Narcotics Kingpin Designation Act and the Clean Diamond Trade Act.
The Treasury’s Office of Foreign Assets Control announced a $40,000 settlement with Cubasphere and an unnamed individual for violating the Cuban Assets Control Regulations, OFAC said in a June 13 enforcement notice.
The Treasury’s Office of Foreign Assets Control announced a $325,000 settlement with Expedia Group Inc. for helping more than 2,000 people with “Cuba-related travel services” that OFAC said violated the Cuban Assets Control Regulations, according to a June 13 enforcement notice.
The Treasury’s Office of Foreign Assets Control announced a more than $220,000 settlement with Spain-based Hotelbeds USA for helping more than 700 people with Cuba-related travel services that violated the Cuba Assets Control Regulations, OFAC said in a June 13 enforcement notice.
Senate Intelligence Committee Vice Chairman Mark Warner, D-Va., and Sen. Marco Rubio, R-Fla., urged President Donald Trump's administration on June 13 not to use U.S. restrictions on Huawei as a “bargaining chip in trade negotiations” with China. The Commerce Department's Bureau of Industry and Security issued a notice adding Huawei and affiliates to a list of entities subject to export administration regulations beginning May 16 (see 1905160072). BIS issued a general license temporarily allowing certain transactions by Huawei and the affected affiliates through Aug. 19. Trump later said sanctions against Huawei could be part of trade negotiations with China.
The European Union Council is considering upholding sanctions placed on 17 Russians for “undermining or threatening” the sovereignty of Ukraine, the council said in a June 7 notice. The sanctions stem from a 2014 decision by the council. The notice contains a new statement of reasons for upholding the sanctions, which may be obtained by the sanctioned individuals before June 14, the notice said.