Technology competition with China, including U.S. foreign direct investment reviews, will be part of the oversight priorities of the Republican-controlled House during the next Congress, House Minority Leader Kevin McCarthy of California said last week.
Canada on Dec. 9 announced new sanctions on people and entities in Russia, Iran and Myanmar for human rights violations. The sanctions target 67 people and nine entities, including 33 current or former Russian senior officials and six entities involved in human rights violations against Russian citizens; 22 people “complicit in gross and systematic human rights violations” in Iran; and 12 people and three entities that “perform key functions on behalf of the Myanmar military regime.”
The Office of Foreign Assets Control on Dec. 9. designated "a diverse array" of over 40 people and entities connected to corruption or human rights abuses in recognition of International Anti-Corruption Day and Human Rights Day. The sanctions target people and entities across nine countries, OFAC said.
The Office of Foreign Assets Controls designated Chinese fishing companies Dalian Ocean Fishing and Pingtan Marine Enterprise and their respective leaders, Li Zhenyu and Xinrong Zhuo, along with eight other affiliated entities and 157 vessels for serious human rights abuses related to Illegal, unreported and unregulated (IUU) fishing in violation of the Global Magnitsky Human Rights Accountability Act, according to a Dec. 9 news release.
U.S.-China tensions and trade restrictions have had a “chilling effect” on research and technology collaboration between the two countries, resulting in slower advancements in some scientific fields, according to a report last week from the Center for Strategic and International Studies and Stanford University's Center on China's Economy and Institutions. The report predicts that more U.S. policies “restricting collaboration” are likely. “[I]f export controls and restrictions on technology sharing in fields such as biotech are introduced by the executive branch, they could have significant repercussions for universities and researchers,” the report said.
The State Department’s Directorate of Defense Trade Controls completed an interagency review for a final rule related to certain license exemptions for allies. The rule, received by the Office of Information and Regulatory Affairs Dec. 2 and completed Dec. 8, would amend the International Traffic in Arms Regulations’ Supplement No. 1 to Part 126 “in support of allies.” DDTC in July announced an open general license pilot to authorize reexports and retransfers of certain defense items and services to Australia, Canada and the U.K. (see 2207190008).
The Bureau of Industry and Security again (see 2209120002) sent a final rule for interagency review that could implement certain export control decisions agreed to at the multilateral Australia Group and place new controls on certain marine toxins, plant pathogens and biological equipment. BIS sent the rule to the Office of Information and Regulatory Affairs Dec. 7 after previously sending it to OIRA Sept. 9, where it was completed with some changes (see 2209120002). The rule, if published, could finalize May proposed controls on four dual-use biological toxins that BIS said can be weaponized to kill people or animals.
As the EU and the U.S. look to impose new export controls on emerging technologies, they should also pursue efforts to remove outdated emerging tech export restrictions that are no longer effective, said Magnus Nordeus, of Digital Europe, a trade policy group, speaking during the EU’s annual export control forum last week. Nordeus said the two sides should “add an ongoing de-control review” to make sure trade policies aren’t unnecessarily placing U.S. and EU industry at a disadvantage compared with foreign companies.
The U.S. should prepare a range of economic and financial restrictions against China to deter it from invading Taiwan, including new sanctions against Chinese banks and outbound investment restrictions on Chinese technology sectors, said Sen. Dan Sullivan, R-Alaska. Sullivan said the sanctions should “go far beyond what has been imposed on Russia” and make clear to Beijing that “no corner of its economy will be left untouched by sanctions.”
European Securities Stakeholder Group Asks for Guidance on Maintaining Asset Rights in Russian Firms
The European Securities and Markets Authority (ESMA's) Securities and Markets Stakeholder Group (SMSG) recently released a paper on the geopolitical risks surrounding depositary receipts. The SMSG looked into the effect of both EU and Russian sanctions on DRs and asks for guidance and a harmonized approach from the ESMA and European Commission over how EU citizens can maintain their asset rights in Russian companies.