White House National Security Advisor Jake Sullivan will be meeting with some top Chinese officials March 18, but the trade war will not be front and center, he told reporters at a White House press conference March 12. A reporter asked what China would have to do for the U.S. to reduce or lift tariffs, or loosen export controls. “I don’t expect that, for example, the phase one trade deal is going to be a major topic of conversation next week,” Sullivan said; instead, it will be more about geopolitical issues and human rights, not details on tariffs and export controls. “But we will communicate that the United States is going to take steps, in terms of what we do on technology, to ensure that our technology is not being used in ways that are inimical to our values or adverse to our security. We will communicate that message at a broad level,” he said. He added that before the U.S. can begin negotiating on trade, there's more work to do with allies, “to come up with a common approach, a joint approach, before we go sit down point by point with the Chinese government on these issues.”
The Biden administration has imposed tighter conditions on previously approved export licenses for some Huawei suppliers, Bloomberg reported March 11. The increased restrictions, which took effect last week, “create a more explicit prohibition on the export” of semiconductors and other components for use in Huawei’s 5G devices, and aim to make the Commerce Department’s export restrictions “more uniform among licensees,” the report said. The move is the latest sign that the Biden administration plans to continue a strict Huawei export licensing policy, which began under the Trump administration and ended with a flurry of license denials during President Donald Trump’s final days in office (see 2101150062). A spokesperson for the Bureau of Industry and Security, which oversees the license applications, said it can't comment on licensing decisions due to “confidentiality provisions.”
The Bureau of Industry and Security outlined its licensing policy for the 14 additions to the Entity List announced earlier this week (see 2103020067) and made several corrections to the list, a final rule released March 2 said. BIS will impose a license requirement for all items subject to the Export Administration Regulations that are destined to the 14 Russian, German and Swiss entities, the rule said. The license requirement will also apply if any of the entities acts as a “purchaser, intermediate consignee, ultimate consignee, or end-user,” BIS added, and no license exceptions will be available. All exports and reexports that now require a license as a result of the Entity List additions but were aboard a carrier to a port as of March 4 may proceed to their destinations under the previous eligibility, BIS said.
The Office of Information and Regulatory Affairs on March 2 completed its review of a final Bureau of Industry and Security rule that will implement sanctions and export restrictions against Myanmar (see 2102170005). OIRA received the rule Feb. 23 (see 2102240007).
The State Department’s Directorate of Defense Trade Controls issued guidance March 2 on how it will implement the increased export restrictions against Russia for the poisoning of opposition leader Alexei Navalny (see 2103020067). DDTC said it will amend the International Traffic in Arms Regulations to add Russia to the list of countries subject to a policy of denial for defense exports and services. That restriction will include certain exceptions, including a case-by-case review for exports that support “government space cooperation” and a six-month exception for exports that support “commercial space launches,” which will also be subject to a case-by-case review. DDTC said other exemptions will be provided for exports to Russia “when in furtherance of government space cooperation.”
The Office of Information and Regulatory Affairs began a review of a final Bureau of Industry and Security rule that will amend the Export Administration Regulations to expand controls on Myanmar. OIRA received the rule Feb. 23. BIS recently announced increased restrictions on exports to Myanmar, including a more strict licensing policy and the suspension of certain license exceptions (see 2102170005).
The Bureau of Industry and Security on Feb. 19 issued a new set of frequently asked questions and revised another set of FAQs to provide guidance on export and record-keeping requirements for shipments to Hong Kong and China. The new guidance explains how exports destined to Hong Kong are treated under the Export Administration Regulations, what license exceptions are still available and whether certain goods require a license. The revised set of FAQs covers record-keeping requirements for those exports. The guidance came about two months after BIS removed Hong Kong as a separate destination from China under the EAR (see 2012220053) and after its July suspension of certain license exceptions for exports to Hong Kong (see Ref:2006300050]).
The Bureau of Industry and Security have outlined a series of increased restrictions on exports to Myanmar, including a more strict licensing policy and the suspension of certain license exceptions. The changes, described by the Commerce Department last week and effective Feb. 18, came after President Joe Biden authorized sanctions and ordered stronger export controls for shipments to the country’s military after it overthrew the government earlier this month (see 2102110020).
Semiconductor firms are hoping to convince the Biden administration to reverse some export restrictions against Huawei as the new administration undergoes a review of China-related policies, Reuters reported Feb. 11. The companies believe significant changes are unlikely but hope to appeal to U.S. interagency panels that at least some restrictions should be lifted, the report said. The Commerce Department, which oversees the restrictions, didn’t comment. In its final weeks in office, the Trump administration issued a flurry of license denials for exports to Huawei after months of inaction on the applications, partly caused by COVID-19 pandemic-related delays (see 2101150062). Export control lawyers say they have not yet seen a shift in the Huawei licensing policy under President Joe Biden (see 2102080046).
As emerging technologies develop, governments need to expand their outreach practices beyond traditional exporters and manufacturers and also focus on universities, research institutes and investors, a February Strategic Trade Research Institute report advised. Government outreach efforts that are not modernized won’t “yield the desired compliance outcome,” the report said.