The Bureau of Industry and Security needs to “answer to Congress immediately” if U.S. software company Synopsys was able to illegally export semiconductor design software to blacklisted Chinese companies, Rep. Michael McCaul, R-Texas, said. McCaul -- referencing a report this week that said BIS is investigating Synopsys for potentially transferring technology to China’s HiSilicon and Semiconductor Manufacturing International Corporation (see 2204140057) -- said the agency needs to do a better job of preventing illegal exports on the front end.
Ericsson will record “extraordinary costs” of about 900 million Swedish krona ($94.3 million) from its decision to suspend its “effective business in Russia indefinitely,” CEO Borje Ekholm” said on a Q1 earnings call April 14. When Russia invaded Ukraine Feb. 24, “we realized that our business in Russia could not be sustained, and we suspended all deliveries to Russia already at that point in time,” he said. When the exemption for public telecom networks was removed from the EU’s Russia sanctions on April 10, Ericsson immediately suspended its Russia operations, he said.
The U.S. should redouble efforts to control emerging and foundational technologies, establish a new outbound investment screening regime and create a new multilateral export control forum with close allies, said Emily Kilcrease, an economic statecraft expert with the Center for a New American Security. A new multilateral regime could be challenging to stand up, Kilcrease said, but is “imperative” to prevent proliferation of sensitive technologies to adversaries, including China and Russia.
Taiwan recently issued a list of items restricted from being exported to Russia. The list, which took effect April 6, includes dual-use technologies, electronics, sensors and lasers, telecommunication goods, aerospace items and other sensitive products that require a license before they can be shipped to Russia, Taiwan’s Ministry of Economic Affairs said, according to an unofficial translation.
The State Department this week published two determinations under the Foreign Assistance Act to provide military equipment and services for Ukraine and the Philippines. The Sept. 2, 2021, determination for Ukraine authorized the drawdown of up to $60 million in defense articles and services "to provide assistance to Ukraine," and the Nov. 9, 2020, determination authorized $18 million in defense items for the Philippines "to support counterterrorism operations." The State Department said neither of the military assistance determinations could have been met under the Arms Export Control Act.
The Commerce Department this week announced its National Artificial Intelligence Advisory Committee, whose AI experts will provide recommendations on AI policy. The 27-member committee, which will hold its first meeting May 4, includes industry and academic officials from Google, Microsoft, Cornell University and Stanford University. The NAIAC's formation comes amid Commerce's efforts to propose new export controls on a range of emerging technologies, including AI and AI-powered products.
The Swiss Federal Council adopted the EU's fifth sanctions package on Russia and Belarus following their invasion of Ukraine, the council said in an April 13 news release. Restrictions include a ban on coal imports and other Russian goods such as wood, seafood and vodka; an export ban on kerosene and other goods; and a ban on Russian companies from participating in public procurement. The sanctions also included a ban on Russian and Belarusian road transport from taking place within the EU. However, Switzerland neglected to impose this restriction, which it said is unnecessary, given its geographic location.
The Commerce Department is investigating U.S. software company Synopsys for possibly violating U.S. export controls against China, Bloomberg reported April 13. Commerce is looking into whether Synopsys, the world’s leading supplier of semiconductor design software, worked with Chinese affiliates to provide chip designs and software to Huawei Technologies’ HiSilicon unit for manufacture at Semiconductor Manufacturing International Corporation, the report said. Both companies are subject to Entity List licensing restrictions.
The U.S. should be careful not to impose strict export controls on quantum technologies that risk hampering academic research and domestic innovation, quantum tech experts told the Center for Strategic and International Studies April 14. They also said the U.S. should allow for an open academic environment that encourages foreign researchers to enter and stay in the U.S. or risk losing those researchers to other countries, such as China.
The Bureau of Industry and Security added 10 more planes to its list of restricted aircraft, including seven planes owned by Belavia, the first Belarusian airline added to the list, the agency said April 14. The agency also added two additional planes owned by Utair and one aircraft owned by Aeroflot. BIS said it will impose penalties and/or jail time or revoke export privileges for any company or person who violates the Export Administration Regulations by providing “any form of service” to the listed aircraft without a required BIS license.