New advanced computing and chip export controls against China (see 2210070049) represent an “unprecedented degree” of U.S. intervention to preserve technology leadership and could deal a major blow to China’s semiconductor industry, the Center for Strategic and International Studies said in a report last week. But there are several “lingering gaps” in the new policy that the Bureau of Industry and Security should “swiftly” address if it hopes to make the rules as effective as possible, the report said, including adding more companies to the Entity List, making sure the restrictions are adopted by allies and ensuring the agency is properly staffed.
The State Department’s Directorate of Defense Trade Controls is working on a range of technology improvements for its website and applications, including a new Part 130 decision tool and a voluntary disclosure application, said Frances Moore, DDTC’s deputy chief information officer. The agency also is working to revamp its website and is coordinating with the Bureau of Industry and Security on a new system to more efficiently share data.
John Carlin, former acting deputy attorney general at DOJ, has joined Paul Weiss as co-head of the Cybersecurity & Data Protection practice and partner in the Litigation Department, the firm announced. Carlin's practice will focus on cyber incident responses, crisis management, national security issues, white collar defense and the work of the Committee on Foreign Investment in the U.S., the firm said. At DOJ, he held the acting deputy AG position from January to April 2021, later serving as principal associate deputy AG under Deputy AG Lisa Monaco and AG Merrick Garland. Carlin's work centered on oversight of the FBI, leading an initiative to stop corporate crime, and cracking down on individuals and entities helping Russia evade sanctions, the firm said.
The EU renewed its sanctions regime against the proliferation and use of chemical weapons for another year, until Oct. 16, 2023, the European Council said Oct. 13. The current restrictions in place cover 15 individuals and two entities, placing them under a travel ban and asset freeze.
The State Department announced penalties on one person and three entities and their subsidiaries for illegal transfers under the Iran, North Korea and Syria Nonproliferation Act. The agency in a notice said the parties transferred items subject to multilateral control lists that contribute to weapons proliferation or missile production. The State Department barred them from making certain purchases of items controlled on the U.S. Munitions List and by the Arms Export Control Act and will suspend any current export licenses used by the entities. The agency also will bar them from receiving new export licenses for any goods subject to the Export Administration Regulations. The restrictions will remain in place for two years from the Oct. 3 effective date.
The Bureau of Industry and Security received more than 150 questions ahead of its Oct. 13 public briefing on its new China-related export controls (see 2210070049) and plans to issue guidance for the restrictions on a rolling basis, senior BIS official Thea Kendler said during the briefing. She said guidance will include frequently asked questions that the agency will look to continually update on a “rolling” basis. “Let me assure you that we understand the need for speed in issuing FAQs,” Kendler said.
The top Republican on the Senate Banking Committee, Sen. Pat Toomey, R-Pa., said the administration has "a strong case for what they're doing" in restricting U.S. technology that aids the Chinese semiconductor industry (see 2210070049), but he questions how effective it will be unless the Netherlands and Japan go along.
A measure that would impose sanctions on people or companies involved in Russian gold trade could pass as part of a package with the Senate's fiscal year 2023 National Defense Authorization Act. The measure, included as an amendment, would sanction people that “knowingly participated in a significant transaction” involving the “sale, supply, or transfer” of gold to or from Russia and the Russian government or transactions that “otherwise involved gold in which the Government of the Russian Federation had any interest.” The entire package of 75 amendments will be decided with one vote.
The Bureau of Industry and Security is "undertaking a vigorous outreach effort" to educate companies on the broad China-related export controls announced last week (see 2210070049) and plans to issue guidance soon, a Commerce Department spokesperson said Oct. 12. That guidance will likely take the form of frequently asked questions, the spokesperson said. The agency is also hoping its Oct. 13 public briefing helps answer some industry questions.
The Biden administration wants to improve the effectiveness of multilateral export controls and is building toward the creation of an outbound investment screening regime, the White House said in its national security strategy published this week. Along with a range of domestic and foreign policy issues, the long-awaited strategy outlines the administration’s approach to trade and emerging technologies and its efforts to outcompete in its rivalry with China and continue to sanction Russia.