A bipartisan group of lawmakers introduced a bill March 12 that would sanction Huawei and other companies producing 5G technology if they “engage in economic or industrial espionage,” according to a news release. The bill would place those companies on the Treasury Department’s Specially Designated Nationals List, which blocks parties from accessing the U.S. financial system. The House bill was introduced by Reps. Mike Gallagher, R-Wis., Ruben Gallego, D-Ariz., Liz Cheney, R-Wyo., and Chrissy Houlahan, D-Pa., and the Senate bill was co-led by Sens. Chuck Schumer, D-N.Y., Rick Scott, R-Fla., and Chris Van Hollen, D-Md.
The Treasury and State departments have struggled to fill positions related to sanctions implementation and enforcement despite increased funding for sanctions resources, according to a March 11 Government Accountability Office report. Positions have been difficult to fill due to competition from the private sector and a lengthy security clearance process, the GAO said, circumstances that have especially affected the Treasury’s Office of Foreign Assets Control and State’s Office of Economic Sanctions Policy and Implementation. Vacancies ranged from 6% to 26% of its “authorized full time equivalents (FTEs).” GAO said State was authorized to hire six FTEs during the start of the 2020 fiscal year even though more than half of its “authorized persons” were vacant at the start of the year.
Five Senate Democrats asked the European Union to sanction a U.S.-designated Russian national for his involvement in U.S. election interference, according to a March 12 letter. In the letter, Sens. Chuck Schumer, D-N.Y., Sherrod Brown, D-Ohio, Bob Menendez, D-N.J., Jack Reed, D-R.I., and Mark Warner, D-Va., said Yevgeniy Prigozhin and his firms, which include the Wagner Group, a Russian paramilitary organization, are “actively engaged in spreading malign influence.” Due to the “broad reach and expanding nature of Prigozhin and the Wagner group’s malign activities abroad, we urge the European Union to take steps to constrain their ability to operate and to deter the Kremlin from engaging in these activities.” The senators added that U.S. sanctions are “only as strong as our multilateral alliances,” and said U.S. pressure would be “significantly enhanced” with EU collaboration.
The Trump administration is prioritizing efforts surrounding its export controls, investment screening and diplomacy to restrict China from acquiring sensitive dual-use technologies, a senior State Department official said. The official, speaking to reporters March 12, said China has ramped up technology theft and said companies and research institutions should be cautious of any attempts by Chinese companies to divert their products for military end-use, which are often masked in “incentives and inducements.”
The Commerce Department Bureau of Industry and Security added 24 entities to its Entity List and revised five existing entries, the agency said in a notice. The new entries include companies in China, Iran, Pakistan, Russia and the United Arab Emirates; and the revised entries are for entities in France, Iran, Lebanon, Singapore and the United Kingdom. The changes take effect March 16. All shipments now requiring a license as a result of this rule that were on dock for loading or aboard a carrier to a port as of that date may proceed to their destinations under the previous eligibility, BIS said.
A top Commerce Department official tempered fears that the U.S. wants to stifle industry competitiveness (see 2003100044 and 2002180060) as it considers further restricting exports to Huawei and China, saying that is not the administration's goal. “Why would you restrict a U.S. company if you're only going to be enabling their competitor?” said Rich Ashooh, Commerce’s assistant secretary for export administration. “That’s a very important principle to engage in.”
Sens. Jim Risch, R-Idaho, and Chris Coons, D-Del., applauded the Treasury Department’s decision to sanction Zimbabwean officials for human rights violations (see 2003110025) but called for more Zimbabwe sanctions, according to a March 11 press release. The senators said they will continue to push the administration to “hold leaders accountable for corruption” and human rights violations, and added that “there remain several others who need to be held accountable for their actions and we urge the administration to update the list as needed.”
The Automated Export System will add 13 new Export Control Classification Numbers to its reference table to allow exporters to report electronic export information in the wake of the transfer of export controls over firearms from the State Department to the Commerce Department (see 2001170030 and 2003090029), the Census Bureau said in a notice emailed March 11. The notice contains instructions for determining which new ECCNs are eligible for certain license types. Census also clarified that by using any of the license exceptions or “No License Required,” exporters “are certifying that the terms, provisions, and conditions described in the [Export Administration Regulations] have been met.”
The Treasury’s Office of Foreign Assets Control issued a Venezuela-related designation, amended three Venezuela-related general licenses and amended two frequently asked questions, according to a March 12 notice. The designation targets Switzerland-based TNK Trading International S.A. for operating in Venezuela’s oil sector. The company is a subsidiary of Russian state-controlled Rosneft Oil Company, according to a press release.
The Treasury’s Office of Foreign Assets Control sanctioned four Mexican businesses because of their links to Cartel de Jalisco Nueva Generacion (CJNG) and the Los Cuinis Drug Trafficking Organization, Treasury said in a March 11 news release. The designated companies include the asset holding company International Investments Holding S.A. de C.V. and a gas station company GBJ de Colima, S.A. de C.V. The two companies have been involved in helping Los Cuinis and CJNG to evade U.S. sanctions.