The Directorate of Defense Trade Controls’ Defense Export Control and Compliance System will undergo scheduled system maintenance April 19, DDTC said April 15. The system’s registration and licensing applications will be unavailable to industry from 6 a.m. to 8 a.m. EDT. DDTC said users should make sure their work in progress is saved before the downtime.
Two Senate Republicans this week suggested they will support the Foreign Relations Committee’s recently introduced China legislation (see 2104080066) that would authorize more export controls and investment restrictions to counter Chinese trade and technology practices.
Two Republican lawmakers urged the Commerce Department to place more restrictions on exports of electronic design automation tools (see 2104060045). In an April 13 letter, Rep. Mike McCaul of Texas and Sen. Tom Cotton of Arkansas said they are concerned that EDA tools are being used by Chinese companies -- including Phytium Technologies, which was added to the Entity List this month (see 2104080011) -- to develop advanced weapons and support the Chinese military.
Kevin Wolf, a former top Bureau of Industry and Security official, presented his strategy for the future of U.S. export controls to address emerging security challenges during an April 15 Akin Gump webinar. He also briefly assessed U.S. export control policy during the Donald Trump administration and continued to say he isn’t behind the rumors that he’s being considered for the BIS undersecretary role see 2104070026).
President Joe Biden signed a sweeping executive order authorizing new sanctions against Russia, allowing the U.S. to designate people and companies operating in Russia’s defense and technology sectors or involved in attempts to influence foreign elections. The order, announced April 15, also authorizes sanctions against a range of Russian government officials and their associates as well as people and companies involved in Russian corruption, actions to “undermine democratic processes,” and human rights violations and transactions designed to circumvent U.S. sanctions.
Canada April 13 issued a guidance for companies doing business with Myanmar, outlining the sanctions and export control measures it has taken against the country and describing risks for industry. Canada stressed it will review sanctions and export permits case by case but will not issue licenses to sell arms or other defense related items to Myanmar if the exports could lead to human rights abuses. Companies should “conduct robust due diligence,” Canada said, including an examination of their supply chains to determine if their activities are supporting military-owned entities. “[W]e expect Canadian companies to uphold the highest standards of human rights and business conduct, whether they are doing business at home or abroad,” Mary Ng, Canada’s international trade minister, said in a statement. “We strongly recommend to any company operating in Myanmar or doing business with Myanmar-related entities to assess its operations and take appropriate action to uphold these standards.”
A bill introduced last month (see 2103110018) by nine Republican senators calls for more export controls and sanctions to allow the U.S. to better compete with China and counter that country’s illegal trade practices. The bill's text, released this week, includes several suggestions for U.S. export control policy, and calls for updating export controls and investment restrictions to better cover critical technologies. The bill also suggests the U.S. collaborate more closely with allies on licensing decisions and urges the administration to ensure that exports of drones “remain subject to the same export considerations as military aircraft.”
Rep. Michael McCaul, R-Texas, is concerned that China is violating U.S. sanctions against Iran, and asked the State Department about potential actions it may take. McCaul, the top Republican on the House Foreign Affairs Committee, said China is reportedly buying Iranian oil “in defiance of U.S. sanctions,” according to an April 12 letter to Secretary of State Antony Blinken. He asked Blinken to confirm whether those reports are true, whether the administration plans to punish China for violating the sanctions, whether China is selling weapons to Iran and what kind of impact this is having on U.S. companies. A State Department spokesperson declined to comment.
The Office of Foreign Assets Control added one person to its Specially Designated Nationals List and removed two others, an April 13 notice said. The agency added Audias Flores Silva, a regional commander for the Cartel de Jalisco Nueva Generacion, a Mexican drug cartel, OFAC said April 14. The agency also deleted entries for Juan de la Cruz, the director of the Banco Nacional de Cuba, and Jose Gutierrez Reyes, who is listed with an address in Mexico. OFAC did not provide further information on the SDN deletions.
U.S.-China Business Council President Craig Allen, former deputy assistant secretary for China in the State Department, said that the Chinese were taken by surprise by how little has changed in the new administration. “There was an expectation between [Donald] Trump and [Joe] Biden, there would be a loosening of technology regulations,” he said, but Commerce Secretary Gina Raimondo has taken steps to tighten export restrictions that affect Huawei, and there have been actions under the new Information, Communications and Telecommunications Services (ICTS) regulations.